Brothers, when playing with contract leverage, don't mess around. If you don't understand the principle of liquidation, it's simply a gamble with your money.

I will clarify things for you with a table, showing how much risk is associated with full margin leverage.

Full margin leverage vs. how much it drops before liquidation:

1x full margin is equivalent to spot trading; no matter how much it drops, it won't be liquidated.

2x full margin, a 50% drop leads to liquidation.

3x full margin, a 30% drop leads to liquidation.

5x full margin, a 20% drop leads to liquidation.

10x full margin, a 10% drop leads to liquidation; theoretically, an 8% drop is the breaking point.

20x full margin, a 5% drop leads to liquidation; theoretically, a 4% drop results in liquidation.

30x full margin, a 3% drop leads to liquidation; theoretically, a 2.5% drop is the limit.

50x full margin, a 2% drop leads to liquidation; theoretically, a 1.5% drop is the threshold.

100x full margin, a 1% drop leads to liquidation; theoretically, a 0.6% drop is the breaking point.

Remember a key point: exchanges also charge for margin call fees, so the actual liquidation point is slightly lower than the theoretical value. Therefore, reasonable allocation of positions is the first step to survival and the beginning of stable profits.

If you want to stabilize your account in the contract market, don't just rely on luck. Clearly arrange your positions to let the market make money for you, rather than working for the exchanges.

If you still don't know how to allocate positions, control leverage, or identify trends, follow Jun Ge @俊哥说趋势 . As long as you take the initiative, I will guide you step by step. Leverage is not a life-and-death matter; it's a tool. When used correctly, even small funds can become a large treasury.