Many people use 10x leverage, but they can’t clearly explain exactly how much they’re going to lose on that trade.
Here’s a simple example: suppose your account has 1,000 USDT, and you’re willing to accept a maximum loss of 1% on a single trade—that’s 10 USDT. Assume the BTC entry price is 64,100, your stop-loss is at 63,450, and the price is about 1.01% away.
Divide 10 by 1.01%, and the notional value of this position is roughly 990 USDT. With 5x leverage, you’d use about 198 USDT as margin; with 10x leverage, about 99 USDT as margin.
Leverage changes margin usage—it won’t decide how much you’ll lose. What truly controls risk is the stop-loss distance and the position size. Fees and slippage will also increase your actual loss, so it’s best to leave a bit of buffer in your position size as well.
If a trade only has a direction but no predefined exit level, I’d rather not do it.
$BTC #BTC合约 #仓位管理 # Contract for beginners
Here’s a simple example: suppose your account has 1,000 USDT, and you’re willing to accept a maximum loss of 1% on a single trade—that’s 10 USDT. Assume the BTC entry price is 64,100, your stop-loss is at 63,450, and the price is about 1.01% away.
Divide 10 by 1.01%, and the notional value of this position is roughly 990 USDT. With 5x leverage, you’d use about 198 USDT as margin; with 10x leverage, about 99 USDT as margin.
Leverage changes margin usage—it won’t decide how much you’ll lose. What truly controls risk is the stop-loss distance and the position size. Fees and slippage will also increase your actual loss, so it’s best to leave a bit of buffer in your position size as well.
If a trade only has a direction but no predefined exit level, I’d rather not do it.
$BTC #BTC合约 #仓位管理 # Contract for beginners