There is a very typical advanced path that you must have seen:

  • When I first got into contracts, I was very obedient, starting with 3 times, 5 times

  • After making a few trades, I thought:

    “Is that all there is? It's a bit slow.”

  • Then I slowly slid to the right: 10 times → 20 times → 50 times → 100 times

  • The last trade blew up, burying all the previous profits I had made in favorable conditions

At this point, many people will say:

“Alas, bad luck, let's try again.”

But they rarely seriously consider one thing:

Every time you slide to the right, how is your speed of death being accelerated?

In today's article, we will only do one thing:
The explanation of "the speed of death behind 10x, 20x, and 100x leverage" is so detailed that your fingers will tremble before you even click.

1. Even with the same 1000U, different multipliers mean your "health bar" is completely different.

Let's assume a simple scenario first:

  • You put 1000 U as a deposit

  • Ignoring details like transaction fees and funding rates, let's focus on just one question:

    "How much more should the price move in the opposite direction before your 1000U becomes unusable?"

To make it easier to understand, let's be a bit rough:

  • 10x leverage:

    • Nominal position ≈ 10000 U

    • If the priceGoing against youFluctuationApproximately 10%，
      This 1000 U was basically all consumed.

  • 20x leverage:

    • Nominal position ≈ 20,000 USDT

    • Price reversalApproximately 5%，
      Your 1000 U is about time to go home and sleep.

  • 100x leverage:

    • Nominal position ≈ 100,000 USDT

    • Price reversalFluctuations of around 1%，
      It should be able to clear your deposit completely.

Think about it again:
For commodities with relatively high volatility
Is it normal to fluctuate by 1%, 5%, or 10% in a day?

So the translation is:

  • With 10x leverage, your "distance to death" is roughly equivalent to a reasonably large intraday price fluctuation.

  • With 20x leverage, your chance of death is roughly equivalent to the market sneezing.

  • With 100x leverage, your distance to death is approximately equal to the price of a candlestick chart trembling.

This is what's known as the speed of death.

II. During the same market trend, different leverage ratios can lead to completely different outcomes.

Let's take a longer view of this concept and give a more concrete example.

Suppose we have the following trend:

  • It fell 3% first.

  • Another 6% increase

You've gone long and entered the market; the direction is correct, no problem.
But what was the result?

✅ No leverage or low multipliers (1–3x)

  • When it drops 3%, you feel a little bad, but you remain calm.

  • It rose 6% afterwards.
    After deducting the initial 3%, the net profit is approximately 3%.

  • If you can weather that pullback completely and capture a portion of the trend...

⚠️ 10x leverage

  • Prices first drop 3%:

    • Your unrealized loss is approximately 30%.

  • Most people can't handle this emotion:

    • Either cut your losses at a low point midway.

    • Either you accidentally add to your position, which puts you in a more dangerous position.

Even if it wasn't a forced draw,
Your heart has already broken halfway.
Even if it rebounds later, you'll either have already sold at a loss or you won't be able to hold on.

☠️ 20x, 50x, 100x

  • A 3% drop translates to a paper loss of approximately -60% for a leverage ratio of 20.

  • Add to that a little bit of transaction fees, slippage, and volatility,
    Many times the lights are simply turned off by the system.

After you are forced to play out with a draw.
The market could still rise another 6%.
However—this time it has nothing to do with you.

The same trend:

  • The direction was judged correctly.

  • The market trend went as you expected.

  • Ultimately, those who profit are those using low-multiplier/small-scale trading strategies.

  • Those high-odds players are only responsible for being eliminated midway, paving the way for others.

You think leverage is helping you amplify your profits?
turn out:

It's helping the market accelerate the process of clearing you out of this trend.

3. Why does the "fatal blow" of high leverage come faster than you think?

Many people die from high leverage.
It's not because they're looking in the wrong direction.
Rather, it's because they simply didn't realize it—

I'm playing a game where the margin for error is almost zero.

1) Normal fluctuations ≠ extreme market conditions

Many beginners imagine:

"I'll use 50x leverage, and as long as there isn't a particularly extreme crash, I can make a profit."

The problem is, from the perspective of high leverage:

  • What others see as a normal minor pullback

  • In your eyes, he's already half dead.

You didn't die from a "black swan" event.
You died from "daily fluctuations".

2) You'll never have time to wait for "mean reversion".

The script in many people's minds is:

"It's okay if it drops a little, it'll just rise back up."

This statement has some merit in a low-leverage/no-leverage environment:
—As long as you have stop-loss orders and position sizing.

But under high leverage:

  • The system won't wait for you to "slowly return."

  • If the account gets wiped out, so be it.
    Whether it goes up or down next has absolutely nothing to do with you.

The market can be wrong for a while.
But you might have already been forced out before that.

3) You think you can "buy more to salvage the situation," but there's actually no room for it at all.

With high leverage, averaging down is the last illusion for most people:

  • Price in reverse:

    • "Add a little more to even out the cost."

  • Reverse again:

    • "Add a little more, then pull it back and it will double."

In low leverage/spot trading,
You at least have the space to gradually bear and spread the burden (this doesn't mean it's necessarily the right approach, it just means you have the space).

In a world 50 times, 100 times,
Where did you get your space from?

  • While adding to their position, they were simultaneously bringing their margin call price even closer.

  • While saying "It's okay, I'll come back," he pushed himself towards the edge of the cliff.

Ultimately, most of these situations don't involve "averaging down to break even."
Instead, it was "accelerating the wipeout by replenishing positions".

Fourth, the higher the leverage, the more likely a person is to make the risky move of "using a margin call as a stop-loss order."

There's another very problematic point:

High leverage and a gambler's mentality can easily become locked together.

You will see many similar operational logics:

  1. "Anyway, it's all the money I have. I'll just consider it tuition if I lose it."

  2. "This order will either double or it will be gone."

  3. "I just want to take a gamble; if it doesn't work out, I'll just start over from scratch."

Note that there is a very dangerous psychological premise here:

  • Normal stop loss:

    • You can control losses to a small percentage of your account.

    • Leave some capital to gradually correct and improve.

  • Margin call: Stop loss

    • Step by step, it rises higher and higher, then suddenly drops vertically downwards.

    • You've accepted the "it's either live or die" mentality.

    • Your account curve will become:

This is no longer a transaction; it's an "unboxing game."

Once you get used to using "margin call" as a stop-loss,
It's like signing an agreement with high leverage:

"I don't need progress, I just need one miracle."

And the probability of a miracle,
And the skills you've truly developed in this market.
They have absolutely no connection.

Fifth, how should ordinary people use leverage to avoid being devoured by the speed of death?

It's not that you can never touch leverage again in your entire life.
Instead, you need to do at least three things first 👇

1) First define your "survival range", then select the multiplier.

In the future, before you choose a multiplier, think about it the other way around:

  • What is the normal intraday fluctuation range for this asset?

    • A fluctuation of 3%–5% is considered normal.

  • What is the maximum adverse volatility I can tolerate for a single trade?

    • For example, 5%, 8%, 10%.

Then ask:

"Given such volatility, using leverage several times over..."
Can I still survive and stop my own losses, instead of being shut down by the system?

If you do the math and find:

  • Use 50x, 100x

  • Normal fluctuations of 1%–2% will quickly wipe you out.

Then this thing isn't a tool to you, it's a bomb.

2) Strict distinction:

"Multipliers for practice" and "Multipliers for risking one's life"

You can set a very simple rule for yourself:

  • Learning/Adjustment Period: Only 1–3 times allowed.

  • Slightly more cooked: Use 5-10 times the amount, depending on the situation.

  • The so-called "20 times or more" only remains a theoretical concept and is not readily applied in actual trading.

Truly mature people don't gamble their lives on multiples.
Instead, it is pressed on:

  • one's own execution ability

  • Understanding of structure

  • Position control

If your current thinking is still:

"My skills are average, which is why I need to use high leverage to amplify profits."

Then I can say with absolute certainty:
What you need now is to learn to walk slowly, not to speed.

3) Remove "margin call" from your keyword list, keeping only "stop loss".

You can set a strict requirement for yourself in the future:

  • Under no circumstances should you let the system make the final decision for you.

  • Every single transaction, regardless of the multiplier, must be set in advance:

    • At what price should I admit my mistake and leave?

    • What percentage will be deducted from my account for admitting my mistake?

As long as you still use the term "margin call" to describe your entrance into the market,
This means you're still trading with a "life-or-death" mentality.

Therefore, high leverage amplifies not only profits and losses, but also the limits of human nature.

Finally, I'd like to share a few of the most important words for you today:

  • The difference between 10x, 20x, and 100x isn't just about the numbers being three lines larger.
    Instead, your "cost of mistakes" and "speed of death" are magnified many times over.

  • Leverage itself is neither good nor evil.
    What truly determines whether you are a "master with a knife" or "using a knife to harm yourself" is...
    It's about whether you have a sense of awe towards risk.

  • Most people don't lose because they "don't understand market trends."
    Instead, they lost because:

    It's clearly only at an elementary school level.
    But they insist on playing with the same difficulty level as professional players, risking their lives.

(Trading for Beginners 101) This series
I just want to help you break down these things that "look cool but are actually the most dangerous" one by one.

If you're already using leverage, or even occasionally made a few profits...
However, the account's overall performance has been fluctuating, and it has been inexplicably liquidated several times.
I want to thoroughly clarify this aspect.
You can come find me.
I will start with the whole set of factors, including position sizing, leverage, margin call price, and stop-loss design.
We'll help you build a strategy that will allow you to "survive long".
As for how far you can go in the future, it depends on whether you are willing to curb your gambling instincts.

Tune in to Binance Square livestream every night at 10 PM!