Recently, many people have been losing money in contract trading, with a sudden price fluctuation causing immediate liquidation. In fact, there is a "logic" behind this— the higher the leverage, the more concentrated the risk.

Imagine if you opened a position with more than 5x leverage; a 20% sharp price movement could instantly liquidate your position. This may sound like bad luck, but many "pinning" phenomena in the market are not entirely coincidental. When market depth is insufficient, some precise price shocks can wipe out high-leverage contracts. The most heartbreaking part is that the price may recover afterward, but your position has already disappeared permanently.

How can you participate in contract trading more intelligently? There are two key points:

First is the choice of leverage multiple. In a highly volatile market environment, moderate leverage of 3-5x is actually a safer option. High leverage may seem to amplify gains, but it also increases the risk of forced liquidation.

Second, pay attention to the platform's liquidation mechanism. Choose exchanges that use the "mark price" (a weighted price combining multiple indices) rather than simply the "latest transaction price" to determine liquidation. This can effectively avoid forced liquidation caused by single-point manipulation. These two points may seem simple, but they are really crucial for protecting your account security.