The Truth About Perpetual Contract Leverage: High Multiples Do Not Equal High Risk, Losing Control Is
People often ask me how much leverage is appropriate for perpetual contracts, but most are asking the wrong question—the key is not the multiple, but whether you can handle it.
Leverage is a tool, not a money printer. Used correctly, it accelerates profits; used incorrectly, it accelerates bankruptcy.
1. The Essence of Leverage is 'Reaction Time', Not a 'Bravery Contest'
Taking BTC as an example:
30x Leverage: A price reversal of about 3.3% may trigger forced liquidation
50x Leverage: A 2% fluctuation poses a risk
100x Leverage: A 1% fluctuation may lead to liquidation
High leverage compresses your margin for error.
The real risk is not the multiple itself, but being over-leveraged and having insufficient margin, leading to being swept out of the market with slight fluctuations.
2. Survival Rules for Different Capital Levels
Small Capital (<1000U): Leverage cap of 10-20 times, single position not exceeding 20% of principal. Must reserve a 50% price fluctuation buffer.
Medium Capital (1000-10000U): Leverage reduced to 5-10 times, combined with trailing stop-loss (recommended 3%), daily review of margin rate.
Large Capital (>10000U): Institutions usually only use 1-3 times leverage, relying on capital to withstand fluctuations rather than depending on high multiples.
3. Iron Rules Are More Important Than Predictions
Only use isolated margin mode: Avoid liquidation of the entire account
Stop-loss is a lifesaver: Cut losses immediately when the price hits, refuse the 'holding fantasy'
Daily target quantification: With a principal of 5000U, earning 50-100U daily is sufficient; compounding beats gambling.
Those who get liquidated fail for two reasons: first, they use living funds to open positions, leading to a skewed mindset; second, they mistakenly believe 'high leverage = high returns', forgetting 'high leverage = low margin for error'.
True winners never place orders without calculating the liquidation line first. @luck萧
