5x leverage: Simply put, 5x leverage means that you have 100 yuan, the exchange lends you 400 yuan, and you use this 500 yuan to trade to get 5 times the original profit.

What is the difference between contract trading and spot trading in actual operation?

Spot trading: If user A invests 200,000 (cost) to buy Bitcoin, the purchase price is 2,000 yuan, and the spot can buy 100 BTC. If it rises to 3,000 yuan, the profit is 100,000. Profit rate: (100,000/200,000)*100%=50%.

Contract trading: You can open 100 positions (full position mode). According to 5x leverage, you only need a margin of 20 BTC, which is about 40,000 yuan (cost), to get a profit of 100 bitcoins. Similarly, if the price rises to 3,000 yuan, you can also make a profit of 100,000. Profit rate: (100,000/40,000)*100%=250%.

From this, we can see that the benefits of contract trading are very obvious. The profit income from spot trading and futures trading is equal to 100,000 yuan, but contract trading saves most of the funds for free use. In other words, it only took 40,000 yuan to achieve the investment and profit of 200,000 yuan in spot trading, which greatly increased the profit rate. If the price drops from 2,000 yuan to 1,500 yuan, assuming that there is a margin call for contract trading, there is no explosion, and the loss is also 50,000 yuan. In order to prevent explosion, user A invests 50,000 yuan, then user A has 150,000 yuan of funds to use, which is equivalent to using less funds to get the same price return. If 150,000 is used to buy financial products, it can generate more than 20,000 yuan in interest. It is conceivable that the profit advantage of contract trading brings everyone a profit return rate. Of course, contract trading also has certain risks. The profit is 5 times and the loss is also 5 times. If the loss exceeds the deposit, it will be forced to sell all, that is, "explosion". Therefore, it is necessary to set stop profit and stop loss, and replenish margin in time to prevent explosion.