Why are most people in the currency circle not suitable for contracts?

Not most people, but actually everyone is not suitable for contracts.

In fact, many people do not understand the usage of contracts. Contracts are actually the futures we see in reality.

Financial products like futures were invented, but they were not essentially intended for speculation. But to avoid danger.

For example, you are in the bulk product business. Let me give you an example. You work in steel.

You have imported tens of thousands of tons of steel, but you are afraid that the steel will be sold in your hands. It may have been three months since the ship arrived.

You are afraid that you will lose money if it falls below the cost. People are afraid that this will affect the development of the steel business, because no one can do a loss-making business. The profits of steel are not very high in the first place, so we still have to take this risk.

So someone provides you with a contract product. You buy a contract for steel prices to fall in the futures market. If the steel arrives in Hong Kong, it will fall.

You lose money on spot money, but you make money on futures money. If it goes up, then you lose money on futures and make more money on spot prices.

This way your profits are locked in.

Regardless of steel or crude oil, there is evidence to be found and there is physical delivery. For example, if a war breaks out, oil prices may rise. Steel may rise.

But who will have a big demand for the big pie now, and no one has the opportunity, so for the convenience of speculation, people now forcibly start to link up with the Federal Reserve, and the big pie has really become a financial technology stock in this ideology.

Contracts in the currency circle are generally perpetual contracts and do not require physical delivery.

I use contracts myself, actually for the purpose of arbitrage. For example, I participate in a staking mining activity, but I don’t have the currency in my hand.

I can only buy in the spot market and short in the contract market. That way I locked in the profits from mining.

But many people use it for trading, but I only use it for hedging.

Trading means guessing the rise and fall. The currency circle may rise or fall by 5-30% in a sudden. It is easy to get liquidated if the leverage is more than 3 times. If there is not enough margin, it is very easy to liquidate the position. If your position is liquidated, you will lose all your principal.

So guessing the size is the same as guessing a coin. If many people teach you how to place orders, they will teach you how to analyze pictures.

Then you can do your own statistics. You can pull the historical data and block the subsequent routes.You can look at the technical analysis to see how likely you are to be right about the ups and downs. Then record it.

Then take another dice and roll it yourself. If it is 135, you will be high, and if it is 246, you will be small. You can try it, your analysis winning rate may not be as good as dice.

So can you still make money on the contract? This is basic probability statistics. As long as you have primary school mathematics, as long as you learn it well, you will not be able to do well, and you will make a contract without any preconditions.

But many people don’t understand that they can’t achieve unity of execution and just trust their own feelings. It's a pity that in this world, you can't make money by relying on feelings. What you need is cognition, what you need is logic.