The root cause of contract liquidation is that you used money that doesn’t belong to you—namely, high leverage.

Suppose you have 1000 USDT, but you use 100 USDT with 100x leverage. That means the capital you’re effectively using is 10,000 USDT—you borrowed 9,000 USDT.

And this 9,000 USDT isn’t yours. As long as the price moves by 10%, your principal of 1000 USDT is gone.

As everyone knows in this space, a 10% move up or down is as casual as spilling water.

Contracts are just a tool. After all, when you’re bearish, you can only open a short position through contracts. Spot can only be bought. When you see too many people going long at 10x, 20x, 100x, take a look at this 1x 🤣

But I’ve already balanced this position by reducing 60%, and the other 40% has been set to break even stop-loss.

The tool isn’t wrong—it's just about how you use it. A knife can be used to kill enemies, but it can also end up injuring you.
#交易员的自我修养