Contracts aren’t that scary—once you understand how leverage works, it all clicks.

A lot of people hear “contract” and immediately shake their heads, thinking it’s a gamble with your life. But once you break the leverage logic down, it’s not that mysterious.
With the same 10kU principal, you can use 1,000U to open 10x, or use 500U to open 20x. When you’re up, the gains are roughly similar on both sides. But when you’re down, the difference shows: a 1% drop means the 10x side loses 100U (10% of your margin), while the 20x side loses 200U (40% of your margin). Even more importantly, the 10x position needs a reverse move of 10% to get liquidated, while the 20x position only needs 5%.
So should you always choose lower leverage? Not necessarily.
If your principal is small and you want to do more coins, higher leverage lets you split into more positions. 10x lets you open up to 10 positions; 20x lets you open up to 20. The key is to be clear about why you chose higher leverage—are you using it to diversify, not to gamble?
If you want to last longer, roll forward with low leverage gradually. If your principal is small but your judgment is accurate, higher leverage can maximize capital efficiency.
Follow Zege. No bragging, no hype—just real trading experience that helps you survive in this space. If you’re still losing repeatedly and starting over repeatedly, come talk to me—I’ll teach you how to make trading simple.
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