Perptual Futures that matter

I saw someone sharing a screenshot of a liquidation again this week, going long on BTC with 30x leverage, and it got wiped out overnight after a slight drop. I roughly counted, and similar stories have happened 7 times in the past 7 days. To be honest, Perptual Futures are like a double-edged sword – they can double your fortune overnight, but they can also wipe you out completely in an instant.

My five years of trading experience have taught me that the most commonly asked question is always: "How much leverage should I use?" Today, I want to speak the truth: the traders who truly survive for a long time never ask how much leverage is the most profitable; they only ask how much leverage they can use without dying.

Think of leverage as a kitchen knife. In the hands of a professional chef, it is a precise creative tool; but in the hands of a gambler, it becomes a weapon that can cause harm. The problem is that most people overestimate their skills.

The Myth of Multipliers

The day before yesterday, a trader told me that he usually only uses 30x leverage because he thinks it's more "stable". I asked him: "Do you really understand the essential difference between 30x and 100x?" He was silent.

Here, we need to dispel an illusion: whether it’s 30 times or 100 times, as long as you are using leverage, you are already walking on the edge of a knife. The only difference between the two is that the market gives you different reaction times.

Based on the current price of BTC at 47000U:

To open 1 contract with 30x leverage, a margin of 16U is required.
Opening 1 contract with 50x leverage requires 10U margin.
Open 1 contract with 100x leverage, requiring only 5U margin.

Does 100x leverage look "most cost-effective"? But the details are the killer—under 100x leverage, if BTC fluctuates 1% in the opposite direction, your margin is basically gone.

The most common mistake beginners make is using 500U to open 100x leverage, dreaming of making 5000U. As a result, with just a small market fluctuation, the account becomes history.