Leverage Trading: 10x to 125x, Get Rich or Get Liquidated?
10x Leverage: Assuming you have 100 dollars, with 10x leverage, you can operate with 1000 dollars. Doesn't it feel like you've instantly become rich?
75x Leverage: Still with that 100 dollars, using 75x leverage, your funds can turn into 7500 dollars. Feels like you've hit a great deal, right?
125x Leverage: This is even more intense, 100 dollars instantly turns into 12500 dollars, you might think you're about to soar!
10x Leverage: If you make a profit of 10000 dollars, your total assets can rise to 11000 dollars, feeling good inside.
75x Leverage: With a profit of 75000 dollars, total assets soar to 82500 dollars, feeling like you're about to get rich.
125x Leverage: Even more exaggerated, with a profit of 125000 dollars, assets jump directly to 137500 dollars, it's simply the peak of life.
But don't forget the risks:
10x Leverage: A 10% drop in price could lead to liquidation.
75x Leverage: A drop of 1.33% could lead to liquidation, basically just watching your money disappear.
125x Leverage: A drop of 0.8% could lead to liquidation, this risk is extremely high.
Psychological Pressure:
The heart burden of high leverage can be significant, as soon as the market has a slight fluctuation, your heart rate accelerates, and you can't even sleep soundly.
High Costs: With higher leverage, trading fees and financing costs also rise sharply, especially if you hold positions overnight, money flies out like water.
How to operate more safely?
Start small: If you are a beginner, or not very accepting of high risks, it is recommended to start with 10x or lower leverage.
Set stop-loss orders: Don't wait to lose money, set stop-loss orders to automatically close positions and avoid larger losses.
Control risk: Keep the risk of each trade within 1-2% of total assets, this ensures you can steadily make a profit each time.
Monitor liquidation levels: Always pay attention to market fluctuations, grasp the liquidation level of your position, remain calm, and don't be scared by sudden risks.
Leverage brings both opportunities and risks; maintaining a stable mindset and doing proper risk management is the key to gaining the upper hand in this game!