The fundamental reason for contract liquidation is that you used money that doesn't belong to you, which is high leverage.



Suppose you have 1,000 USD, but you use 100 USD with 100x leverage, which means you're actually deploying 10,000 USD, borrowing 9,000 USD. And this 9,000 USD isn't yours; as long as there's a 10% fluctuation, your principal of 1,000 USD is gone.

As everyone knows, in this circle, a 10% fluctuation is as common as sprinkling water.

Contracts are just tools; after all, when you're bearish, you can only open short positions through contracts. Spot trading can only buy. For bullish positions at 10×, 20×, 100×, here's a look at 1x 🤣.

But I’ve already closed 60% of this position, and the other 40% has set a break-even stop-loss.

Tools are not wrong; it depends on how you use them. A knife can be used to kill enemies, but it can also hurt yourself.
#交易员的自我修养#
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BitTanIsWorkingHard.
· 7h ago
Holding a small position is for better heavy positioning. Do it quietly, neither humble nor arrogant.
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