Recently, I found that many people do not understand the leverage figures.
I opened a 100x leverage figure, but the actual position is less than 1 times the full position.
Some people think that a 100x leverage order means opening a 100x leverage.
This is a wrong understanding, and it is easy to be deceived by the KOL who shouts orders.
Because no matter whether the market is long or short, he can send you an order at any time,
and the yield is more than ten times or dozens of times.
I have seen a KOL open a position of less than 10U before,
and the yield is more than ten times, but the yield is only 10U.
Take 100U margin as an example. If you set the leverage to 100X,
then the funds you can call are 10,000. You have 100 margin,
and the exchange "lends" you 9,900. If you go long or short,
directly fill the position value of 10,000, then the fluctuation is about 0.7%,
your position will be liquidated, 100 margin, the exchange gives the counterparty.
But you can choose, with 10,000 available funds,
you can open 1U (position value 1% of your position),
or open 10U (position value 10% of your position),
or open 100U (position value 100% of your position, that is, 1 times)
or open 1000U (position value 1000% of your position, that is, 10 times)
So many KOLs who post orders to cut leeks
can take out 100X leverage orders for you at any time,
and the rate of return is x000%, hundreds or thousands of times,
newbies are easily fooled.
Except for BTC ETH, which meet the standards and cannot open 1U,
many altcoins can open 1U positions,
counting 400 spot pairs and 350 altcoins,
each adjusts the leverage to 100X, and then each opens 1U,
and the margin is put into 1000U, then basically there will be no liquidation,
then the order of the latter one will be issued if it rises.
Spread the basic knowledge to prevent more novices from being deceived.
