In simple terms, it's all about making money quickly! For those who love adventure, contract trading is as thrilling as online gambling. Imagine, you work hard for a month to earn ten thousand, while in the contract market, someone uses ten thousand to open a thousand times leverage, making ten thousand with just a one-point rise; what if it rises by ten points? That's a hundred thousand, earning your annual salary in just a few minutes! Who can resist such temptation?
Of course, some may question: 'If the direction is wrong, won't I lose everything?' At this point, you can think from a different perspective: even if you lose nine times, as long as you succeed once, you can be profitable. In the crypto world, it's common for extreme market conditions to cause fluctuations of 1-2% in a second. If you're lucky, you might earn a month's salary in just one second!
This is why so many people choose to trade contracts in the crypto space; everyone longs for quick wealth. In this impatient society, most people are unwilling to accumulate wealth slowly and prefer to take high risks for a gamble.
Of course, some people adopt a more conservative strategy. They use large positions with small leverage; although the returns are not as high as those of gamblers, 7-8 out of every ten trades are profitable.
However, the contract market is not a child's play; liquidation events are common. In the past month, the liquidation funds in the crypto contract market reached 20 billion dollars! That's not a small number, indicating that both small and large capital must be cautious in the contract market.
How to avoid liquidation in the contract market?
The key lies in position management! Liquidation often results from excessive leverage and full position operations. Therefore, when engaging in contract trading, it is essential to control your position and leverage carefully. When leverage is high, the position should remain extremely low to ensure capital safety.
Remember, regardless of how the market fluctuates, we must protect our position safety. The market will always stir at some point, but the safest strategy is to place yourself in a solid fortress. You can occasionally peek out to feel the pulse of the market, but you must never expose yourself to the front lines of risk.
So, the only secret to playing contracts is—position management!