Many people ask me why I dare to use 100x leverage for contracts, and then they say with a worried face: with such a high multiple, isn't it just a wave of Fluctuation that leads to getting liquidated?

In fact, everyone may have a misunderstanding. High leverage does carry risks, but the level of risk really depends on how it is used. If you use 100x leverage in the same way as with 5x or 10x leverage, that is certainly dangerous. However, if you learn position management, then high leverage may not necessarily come with greater risks.

There is a clear comparison: when you can open 10 bitcoins, some people greedily invest all in under high leverage, which certainly makes them prone to Get Liquidated. But if you can be disciplined and only dare to open 0.5 under high leverage, your risk resistance ability is actually stronger. High leverage really tests personal self-control and understanding of the market.

Contract trading relies half on market research and half on operational techniques. Ultimately, keeping a light position is the key. Light, position, weight. These three words are easy to say but difficult to practice. High leverage has its advantages, as it can increase capital utilization, but the premise is that you must be able to control your own hands. So don't be scared by the multiples; the key is to look at how heavy your position is.