Even if you trade with the highest leverage of 10 times the full position in spot trading, you still have a 10% operational space. However, the maximum contract leverage is 100 times, and a 5% position only requires a 20% fluctuation to be liquidated. The reality is that many people use 10% or 20% positions to open 100 times contracts, and some even open 200 times contracts, which can be liquidated in just a few hours. This is entirely devoid of technical analysis; it is pure gambling. The contracts that are addictive involve small capital, one-way market conditions, and starting with half a position or the full position. If you can avoid opening a contract, do it. If you can trade in spot, do it. Even if there's a one-point slippage, I am willing, because at least I hold the spot assets and won't complain about excessive profits automatically reducing my position.
