Understand the leverage and Futures Trading in the crypto world in one minute.....

The difference between opening 1000u with 10x leverage and 5000u with 2x leverage is significant when using 10,000u in funds. While opening 1000u with 10x leverage and 5000u with 2x leverage may seem similar, in reality, it represents a stark contrast between 'quick liquidation' and 'steady trial and error.' How dangerous is high leverage? Why do beginners get liquidated instantly? After reading this, avoid 90% of the fatal traps in Futures Trading!
Futures Trading Leverage Differences in the Crypto World and Recommendations for Beginners:
In the crypto world Futures Trading, the choice of leverage directly determines the magnification of risk and return. Opening a 10x leverage with 1000u and opening a 2x leverage with 5000u may seem like both actually control a capital of 10000u (1000×10=5000×2), but the risk logic, volatility resistance, and operational difficulty of the two are completely different, especially for beginners, as choosing the wrong leverage can lead to entirely different outcomes.
1. The core differences between the two leverage methods
1. Margin and Risk Resistance Ability
Opening 10x leverage with 1000u: The margin is only 1000u, and when the market fluctuates 1% in the opposite direction, the loss will be 10000u×1%=100u, accounting for 10% of the margin; if it fluctuates 10% in the opposite direction, the margin will be completely wiped out (liquidation).
Opening with 2x leverage at 5000u: Margin 5000u, when the market reverses by 1%, the loss is also 100u, but only accounts for 2% of the margin; a 20% reverse fluctuation is required to trigger a liquidation, and the risk resistance ability is 2 times that of the former.
Core difference: The less margin (higher leverage), the weaker the ability to withstand fluctuations, and the risk of liquidation increases exponentially. #优质合约内容官