Attention traders! Does this image remind you of something terrifying? A screenshot summarizing a trade on the PIPPINUSDT pair in the futures market (Perp) exceeded a loss of -4,733 USDT, with a return on investment (ROI) of -967.90%! ๐
What do the numbers tell us?
Net Loss (PNL): -4,733.53 USDT
Return on Investment (ROI): -967.90\%
Leverage: Cross 20X ๐ฅ
Trade Size: 9,931.865 USDT
Margin: 489.05 USDT
3 hard lessons to learn from this tragedy:
Leverage (20X) is a double-edged sword: as much as it amplifies profits, it catastrophically amplifies losses. See how the margin of 489 USDT became responsible for a loss of nearly 10 times its amount! Are you using an appropriate leverage for the size of your portfolio?
Risk management is the real hero: when the Margin Ratio reaches -59.50%, it means the trade is very close to the liquidation price. Do you always have a strict stop loss order set?
Trading unknown coins (Low-Cap Coins): trading in new or low market cap coins like PIPPINUSDT can experience crazy price fluctuations. Do you prefer safety in large coins (Blue Chips) or risk in Meme Coins?
๐ก Question to the Binance Square community:
What is the biggest loss you learned a lesson from that you will never forget in the futures market? Share your story in the comments! ๐
#BinanceSquare #CryptoTrading #PerpetualFutures #RiskManagement #PIPPINUSDT
