Contract Position Management (Low/High Leverage Compilation 3-200 Explanation)

Understanding Coin-Margined and U-Margined (Personal Recommendation: Coin-Margined)
1. U-Margined (Stablecoin-Margined, Mainstream)

Margin, profit/loss, and fees are all settled using stablecoins like USDT/USDC, and have nothing to do with the price movement of the underlying asset.
When opening a BTC contract, you put in, earn/lose, and pay fees all in U, without holding BTC itself.

2. Coin-Margined (Underlying Asset-Margined)

Margin, profit/loss, and fees are settled in the corresponding coin of the contract.
When opening a BTC contract, margin is in BTC; if you profit, you get BTC; if you lose, BTC is deducted, and you hold the corresponding cryptocurrency throughout the position.

The following is all personal operation management. For specific capital, you can ask. It is not recommended to operate with high leverage under 500u.
First, you should confirm whether you are doing one trade or multiple trades.

For example, one trade:
Isolated Margin (only deducts the isolated margin amount, margin and account funds do not affect each other)
Regardless of price position, mainly consider the difference between coin-margined and U-margined. Coin-margined has a slightly further liquidation price, while U-margined is much closer. For 100x leverage, the liquidation is only the coin price divided by 100 (ETH 1600, so 16 points trigger liquidation; BTC 60000, so 600 points, related to leverage).
1. Isolated Margin (Isolated Margin)
Each open order occupies a separate margin, and the position funds are completely isolated from other funds in the account.

• Principle: When opening a position, only the margin required for that order is frozen, and losses are deducted only from this isolated fund;
• Liquidation rule: Only when the isolated margin of the current position is completely exhausted will liquidation occur, without touching the remaining idle funds or other position funds in the account.

Cross Margin (all funds are mobilized together, margin and account funds affect each other)
First consider whether it is one trade or multiple trades. For 1 trade, enter normally according to percentage multiplied by 2. If entry is 3%, calculate 6%; for 2 trades, calculate 3% each, combined is 12% (considering stop-loss above).
2. Cross Margin
All available balance in the account serves as the common guarantee margin for all positions, and all position funds are interconnected.

• Principle: All balances in the account (spot balance, remaining funds from other contract positions) automatically act as margin for the current position;
• Liquidation rule: As long as the total account funds are insufficient to cover the position loss, all positions are liquidated directly, clearing all available funds in the account.

In the case of one trade holding, this ratio should be greater than the 3% entry capital. Holding 300% (leverage 100) here accounts for 12% of total position, which is higher than the 3% entry capital plus the holding.
If 2 trades are holding, under normal BTC and ETH holding conditions, at 3% position, holding 300% consumes more than 24% of funds. The actual situation is that due to floating loss, the liquidation price becomes closer. When both positions are floating losses, the funds do not change, but the liquidation price increases.
(Explanation of floating loss above)
1. 3x Leverage - 10x Leverage
This type of leverage is suitable for altcoins and long-term players.
1. Altcoins
Conditions: 1. Hot coin 2. Coin market cap greater than 200 million assets 3. No significant short-term surges or drops (no operation if movement exceeds 150%)
Confirm your own funds and operation method, whether you are trading one coin or multiple coins.

First, for this coin, view its price and divide it into 100 parts, equivalent to dividing the coin price by 100. Then enter the market with 3x-10x leverage. After entering with 3-10x leverage for both long and short, and having calculated the price, due to the leverage, altcoin volatility increases. The percentage determines your profit (funding fees excluded here). Stop-loss is generally recommended at around 8% of the coin price fluctuation for 3-10x leverage. Take-profit is recommended at 12%. This depends more on coin selection ability, generally focusing on news and capital size.
✅: Stable, less loss, easy to catch big capital to turn over, the fastest way for small capital to increase capital, increase crypto knowledge reserve
❌: Beginners are prone to loss, pursuing news, remember to stop loss

2. Mainstream Long-Term
Conditions: 1. Sufficient capital size 2. Ample time 3. Mindset unaffected by short-term 4. Able to hold 5. Long-term thinking ability

Confirm your own capital size. It is recommended to divide funds into 8-10 parts, and prefer coin-margined isolated margin.

Mainstream fluctuations rely more on percentages. If you only trade price movements, directly multiply BTC price by 10%-15%, this will meet long-term profitability conditions. If you can stabilize your capital size, theoretically, 8-10 parts of funds are extremely difficult to liquidate (except black swans and bull markets). Add one part of funds when the coin price drops 3%, thus increasing error tolerance significantly, facilitating long-term compounding and reducing loss risk. After adding the 4th part, add 2 parts for each of the remaining 4 parts. (As mentioned earlier, we use coin-margined isolated margin, the liquidation price decreases as added margin increases, the point becomes lower, not as much as cross margin, remember.)
✅: Easy to profit, no need to watch charts long-term, not time-consuming, high error tolerance.
❌: Long holding time, those with unstable thinking should directly pass. Encountering black swans and bull markets can easily cause losses. It is recommended to still use stop-loss.

2. 10x Leverage - 50x Leverage
Applicable for short-term swings and mainstream within a week

Short-term altcoin players, only trade BTC/ETH mainstream, have stable chart-watching time, can strictly execute stop-loss
Only operate with BTC and ETH mainstream. Be cautious using 10-50x leverage on altcoins (altcoin fluctuations are irregular, high leverage easily leads to one-time liquidation)

1. Altcoin: Single open position occupies 5% of total funds, same coin holds at most 2 orders simultaneously, total not exceeding 12% of account funds. Try to use minute charts as a baseline. Increased leverage means increased risk. Start operating with a short time frame, exit when target profit is reached, and stop loss directly. After all, with a 5% position, it is not recommended to add positions or hold.
2. Mainstream: Single open position follows this method. If it is intraday, use 5% position. Intraday volatility is sufficient for any leverage to generate profit. It is recommended to stop loss at 1.1% of the day's coin price fluctuation and take profit similarly.
If doing weekly level, you can actually follow the same method as long-term, dividing funds equally. Generally, 10 parts are recommended (Monday usually sees big surges; observe the market on the weekend to choose next week's direction for entry). Hold 2 layers initially, add one layer every 3% fluctuation. There are many sideways pullback scenarios, rarely extreme one-sided trends. Stop loss at 4% of coin price fluctuation.

✅: High capital utilization, small intraday fluctuations can quickly realize profits, short holding period
❌: Extremely low error tolerance, wicks and reverse instant moves can directly liquidate; emotional loss of control easily leads to consecutive losses

3. 50x Leverage - 200x Leverage
Stay away from altcoins, choose mainstream

This type of player belongs to ultra-short-term traders. The core is to use high leverage to amplify capital risk and reward, and quickly exit with profit;
These players generally have small capital, using short-term fluctuations with leverage to quickly amplify returns, aiming to grow small capital. This extremely tests execution and strict stop-loss discipline. The vast majority will be directly liquidated due to one missed stop-loss. The proportion of long-term stable profitability is extremely low.

1. It is recommended to use cross margin for opening. Only use about 2% of total cross margin for the order. Although the profit is not as large as 10%, it greatly protects your small capital. Only with capital can you continue trading. Always remember the function of stop-loss: to protect yourself. Do not give up future moves for a single order.
And never hold overnight orders. Extremely mechanical operation is the only way to achieve profit. Major one-sided moves are not considered.
2. Remember: No position adding, stop loss at 4% of total position and exit, no overnight, no multiple openings

✅: Extremely high capital utilization, no need for macro environment, short-term intraday fluctuations are enough
❌: Low error tolerance, extreme market conditions easily trigger liquidation, requires psychological endurance, prone to emotional trading