#Ripple筹划设立10亿美元XRP资金池 Why do contracts always get liquidated? Frankly, most people’s understanding of leverage is just a big mess.

You see platforms marked with 5x, 10x, and naively think you’re safely opening 5x positions? Wrong. If you have $10,000 in your account, the maximum loss you can actually withstand is $500. Yet you turn around and open a $30,000 position. Do you think that’s 5x leverage? Haha, you’re actually playing with 60x. Still thinking, "No problem, I’m safe"—but in reality, you’re already standing on the edge of liquidation.

Those who truly understand contracts know that this is not gambling at all, but a risk hedging calculation game. Every penny you earn is at the cost of someone else’s liquidation or forced closure. That’s how this market works—there are always stop-loss orders from some traders, which create take-profit opportunities for others.

Look at professional traders—how do they operate? 70% of the time, they’re waiting. If the market isn’t moving to their target, they stay on the sidelines; once they decide to act, their goal is only one—precisely capitalize on this wave of market movement.

Want to make money here? You need to learn counter-human psychology. When others panic, you stay calm. When others are eager to add to their positions, you remain cool-headed. Stop-loss must be strict—losses should not exceed 5%. Conversely, once you have profits, close your position decisively, at least twice the amount of your loss.

To be honest, contracts themselves are not inherently evil. If you blow your account, it’s because you’re gambling; if others make money, it’s because they’re calculating carefully. Instead of blaming the market and saying "contracts are all traps," ask yourself—what’s truly trapping you is that restless, unplanned heart.

Stop trading based on feelings. In dreams, you can make anything; in reality, the only path is liquidation. Want to survive? Want to turn things around? Put discipline first.