How to avoid liquidation when doing contract trading?
In all these years in the cryptocurrency circle, I have never seen a person who has been playing contracts for a year and has never had a liquidation.
Yes, you heard it right, no one.
No matter how many times you open, as long as you use leverage, there is always the possibility of liquidation.
For example, your margin is 1 million U. If you take 30,000 U and play 10 times leverage, it will greatly reduce the possibility of liquidation, and it is very unlikely to be liquidated.
But you already have 1 million U. Store coins at the bottom, make a grid with the median, do not move when it exceeds the high position, and only sell at the high position without buying. You can already beat most people, and you don’t even look down on contracts.
There are three types of people who play contracts. One type is low-risk arbitrage and hedging, the second type is professional players, commonly known as sickle big households. The third type is gamblers.
Most of them are gamblers. The second type cooperates with the exchange to harvest the third type. So when you play with them, what else do you have besides luck?
If you can rely on luck for your bright future, you won't be seen fighting in the leverage market.
The fate of gamblers is as fragile as popcorn, vulnerable to a single blow. In the end, it will become fuel in the bear market.
If you want to spend other people's money, want to take money out of their pockets, they will eventually take it away.
I need fans, you need references. It's better to pay attention than to guess blindly.