The secret to never breaking the bank in the currency circle
Jul 29, 2025 pm 02:39 PMThe secret to "never break down" in the currency circle contract lies in strict risk control. 1. Use low leverage below 5 times to improve the fault tolerance rate; 2. Strictly set stop loss and resolutely execute it to avoid holding orders; 3. Use dynamic margin management of opening positions in batches, increasing positions in profits, and withdrawing profits; 4. Avoid major news or extreme market conditions during low liquidity periods; 5. Use cross-platform hedging or option protection to reduce one-way risks; 6. Maintain emotional stability, formulate plans and use tools to automatically execute; through these methods, the risk of breaching positions can be reduced to near zero. The survival rule of the contract market is not how many times you win, but how long you live.
The secret of "never breaking up" in currency circle contracts: the art of risk control
In currency contract trading, "never break down" is the dream of many traders, but the high-leverage market is essentially a high-risk game. However, through scientific risk control strategies, the probability of liquidation can be greatly reduced and even long-term stable profits can be achieved. Here are the key points:
1. Low leverage is the core
Although high leverage (such as 100 times) can amplify returns, slight fluctuations will trigger strong flattening. It is recommended to use leverage below 5 times, especially for beginners, low leverage can greatly improve the fault tolerance rate. For example, 10 times leverage will lose its position when it fluctuates in the reverse direction of 10%, while 2 times leverage will need to be cut in half before it will be forced to level.
2. Strictly set stop loss
Not stop loss is the main reason for the liquidation. Set a stop loss point in advance (such as 5% of the principal) and implement it firmly. Avoid the mentality of "holding orders". When the market fluctuates extremely, there may not even be any opportunity to replenish positions.
3. Dynamic margin management
Open positions in batches : The first position building shall not exceed 20% of the total funds, and reserve space for replenishment.
Increase profit position : only increase positions when floating profits, and never spread the cost when losses.
Withdraw profits : transfer some profits regularly to avoid profit rebate caused by heavy positions.
4. Avoid extreme market conditions
In major news (such as Fed interest rate negotiations, exchange storm) or periods with low liquidity (such as late night), the market is prone to pinning. At this time, the trading is suspended or the position is reduced.
5. Hedging strategy
Cross-platform or cross-contract hedging (such as opening long BTC and short ETH at the same time), or using options to protect spot positions can reduce one-way risks.
6. Emotion and discipline
Filing of positions often comes from greed or fear. After formulating a transaction plan, use tools (such as conditional orders) to automatically execute it to reduce human interference.
Summary : There is no absolute "not to lose positions", but through leverage restraint, stop loss discipline and fund management, the risk can be controlled to close to zero. Remember, the survival rule of the contract market is not "how many times you win", but "how long you live".
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