Total Contract Liquidation? Here Are 2 Tips to Avoid Pitfalls!



Stop blaming bad luck!
Contract liquidation always comes down to poor risk control!

🔥High leverage is not scary
100x leverage, only invest 1% of principal
Risk is exactly the same as a 1% spot position
Actual risk = leverage × position size

💡Stop-loss is your life-saving charm
In 2024's big drop, 78% of liquidations, losing 5% and holding on without stopping out
Iron rule: single loss ≤ 2% of principal
No stop-loss, eventually lose everything!

🧮Calculate your position size carefully, never invest recklessly
Maximum investment amount = (Principal × 2%) ÷ (Stop-loss ratio × leverage)
With 10k principal and 10x leverage, invest up to 1,000
Strictly control your position, avoid liquidation!

✅Three-step take profit, secure your gains
Sell 1/3 at 20% profit, sell another 1/3 at 50% profit
If it breaks below the 5-day moving average, close all remaining positions

🛡️Spend a little to prevent black swan events
Use 1% of principal to buy options
Block 80% of sudden large drops, protect your principal steadily!

📌Trading iron law, embed it in your bones
❶Single loss ≤ 2% of principal
❷70% of the time, stay out of the market and wait for opportunities

Trade according to rules, don’t gamble on emotions
Say goodbye to liquidation, profit steadily!

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