"The real reason why 90% of people's contracts are blown up"
Fundamentally, the reason for the contract blowup is that you have invested more money than you can actually bear, that is, you have adopted high leverage.
For example, you hold 1000u in your hand, but choose to take out 100u to trade with 100 times leverage. In this way, the scale of funds you actually operate has reached 10000u, of which 9000u is borrowed and does not really belong to you. Once the market fluctuates by more than 10%, your 1000u principal will be completely lost.
In the investment field, market fluctuations of about 10% are extremely common and are not uncommon.
Contract trading is just a tool. For example, when you are bearish on the market, you need to use it to perform short-selling operations, while spot trading can only perform buy operations.
If you don't know what to do in the current market, click on my avatar, follow me to see the introduction, bull market spot planning, contract password, free sharing.
In trading, we often see leverage of 10x, 20x, or even 100x, but please do not ignore the most basic 1x leverage, which is the case when no additional borrowing funds are used.
Please remember that there is no right or wrong in the tool itself, the key lies in how we use it. Just like a knife, it can be a weapon to protect yourself, but it may also cause harm to yourself inadvertently, depending on the user's skills and mentality.