$ZEC
Recently, many novices have been asking me the most common question: How many times leverage should I use for contracts?
To be honest, I've heard this question for ten years, and both newbies and veterans have stumbled here.
Remember—leverage is not a tool to make money; it's a sharp knife.
Used well, it's an accelerator; used poorly, it's a meat grinder.
Perpetual contracts have no expiration date; as long as you don't get liquidated, you can hold on indefinitely.
It sounds free, but in reality, freedom comes with temptation:
You can enter whenever you want, exit whenever you want, profits can be magnified, and risks double.
Yesterday, a brother told me he often uses 30 to 50 times leverage.
I countered, why not just go for 100?
He replied, "Too quick to get liquidated," and I laughed.
Because as long as you use leverage, no matter how many times, you're walking on the edge of a knife,
The only difference is how much reaction time the market gives you.
Take BTC as an example: 30 times requires 16U, 50 times requires 10U, 100 times requires 5U.
Change the multiplier, and the entire risk-reward profile is different.
1 times is as stable as an old cow, but slow; 100 times is like a rocket—you need to have stop-losses and principles, or else one wrong click and you're down.
What really causes liquidation is often not high leverage, but chaotic positions and thin margins.
Trying to leverage a few hundred U into dozens of times, a slight fluctuation can throw you out.
The most painful part is not losing money—it's that you got the direction right but got swept out early.
So remember this:
Perpetual contracts are not afraid of high multiples; they're afraid you don't leave yourself room.
Margins must be able to withstand normal fluctuations.
If you don't want to be educated by the market, engrave these three iron rules in your mind:
1️⃣ Always use isolated margin; don’t just use cross margin.
2️⃣ Stop-losses must be set; holding positions is like signing a contract for liquidation.
3️⃣ Don't be too greedy; with a capital of 5000U, consistently taking 50 to 100U daily, compounding interest is scarier than you think.
To put it simply, leverage doesn't amplify the market; it amplifies your mindset and discipline.
Most people lose not because of the market, but because they got carried away.
One last thing:
Being able to control losses with 100 times leverage is safer than having no stop-loss with 5 times.
Perpetual contracts do not survive on luck; they survive on a system.
Leverage is not the problem; losing control is the issue.
