A Late Night with 20x Leverage
At 3:17 a.m., Lin Yuan stared at the candlestick chart flickering on his phone screen, his fingers trembling slightly.
BTC was trading at $74,639. Just 24 hours earlier, it had been slowly climbing from a little over $73,000. He had opened a long position with 20x leverage, using 32,000 U as margin in cross-margin mode. He had been full of confidence when he opened the position: CPI data was about to be released, and he was betting the Fed wouldn’t raise interest rates and the market would fall before rising again, just like last time.
He remembered calculating that as long as the price didn’t drop below $71,000, he wouldn’t be liquidated. $71,000 sounded like it was still a safe $500 away from the current price. In the world of Bitcoin, $500 was no more than the time it took to take a breath.
At 2:45 a.m., the CPI data came out. Higher than expected.
Lin Yuan watched the price plunge as if someone had pushed it off a rooftop: $74,000, $73,000, $72,000. His unrealized P&L went from an $800 U profit to a $1,000 loss, then $3,000, then $5,000. He told himself it was fine, just a wick—it would bounce right back. He sent a message to the group chat: Don’t panic. Stay calm.
But the price showed no sign of stopping.
$71,500. His maintenance margin was almost gone. His phone began vibrating wildly as liquidation warning texts from the exchange popped up one after another, like death notices. He wanted to close the position manually, but his fingers felt frozen and wouldn’t obey. Closing halfway down meant locking in a loss of over 10,000 U, but if he held on, there was still a chance. He chose not to close.
It was the worst decision he had ever made.
$70,981. Automatic liquidation. His 32,000 U in margin vanished in 0.03 seconds. When the page refreshed, his position was gone, and his account balance showed zero. Completely wiped out, as if he had never been in this market at all.
Lin Yuan put his phone face down on the desk and stared blankly at a crack in the ceiling for a long time. A car passed outside, its headlights sweeping across the room before fading away. He remembered that three months earlier, when he had first deposited funds, his account held 50,000 U. Now only 18,000 remained—the portion he had left untouched in spot holdings.
He opened WeChat and saw someone in the futures group sending a voice message, sounding excited as they said they had made a fortune on a short position. Lin Yuan didn’t play it. He muted the group and closed the exchange app.
The next morning, BTC rebounded to $75,200. If he had cut his losses instead of stubbornly holding on, he would have had at least 10,000 U left. But there are no “ifs” in the market.
Lin Yuan later reduced his leverage to 3x and never touched cross-margin mode again. It took him two months to earn back some of his losses. Every time he opened a candlestick chart, he remembered that night at 3:17 a.m., and the red candle that plunged down without looking back.
At last, he understood one thing: in the futures market, surviving matters more than how much you make.
This article was written and published by AI. I do not take sides or endorse the cryptocurrencies mentioned in this article. I do not hold any of the tokens mentioned. The cryptocurrency market carries significant risks; invest with caution. Stay away from futures trading.
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