Experience sharing: contract trading strategy optimization
In contract trading, if the full position mode is adopted, a leverage option that has been verified in practice and has controllable risks is 3x leverage. This setting exquisitely balances the leverage effect and risk management:
Moderate leverage effect: below 3x leverage, although the risk is reduced, the efficiency of capital utilization is also greatly reduced, and it is difficult to give full play to the leverage's amplification effect.
Key to risk control: Once the leverage exceeds 3x, although it may bring higher potential returns, the risk of liquidation rises sharply, which puts higher demands on the psychological tolerance and risk management capabilities of traders.
Therefore, the full position triple leverage combined with strict stop loss constitutes an efficient and stable trading model. Such a strategy allows traders to enjoy the profit bonus brought by leverage, and effectively limit potential losses through stop loss settings, ensuring calmness and rationality in volatile markets and long-term steady progress.
