Contract trading liquidations are often blamed on market conditions, luck, or market tricks. But after ten years of trading, I see clearly—liquidation is not a market judgment at all, but a trap that traders walk into step by step.

**Leverage is not the culprit; position size is the Grim Reaper**

99% of beginners get this wrong, treating leverage as the source of risk. In reality? Using 100x leverage with 1% position size, the actual risk is roughly the same as holding a full position in spot trading.

But how do people who get liquidated usually do it? Using 20x leverage with 30% position size, and when a few candlesticks turn against them, their account turns to ashes. What's the difference? One person does the math, the other blindly rushes in.

Professional traders keep a formula in mind: Actual risk = leverage multiple × position ratio. It looks simple, but how many actually follow this?

**Stop-loss is like insuring your account**

During the sharp decline in 2024, 78% of liquidated accounts shared a common problem—losing over 5% but still stubbornly holding on, refusing to stop-loss.

Professional traders have a strict rule: any trade should not lose more than 2% of the account. This is not about being timid; it’s about survival. Stop-loss prevents a single mistake from turning into account wipeout—it's that simple.

**Rolling positions is a step-by-step attack, not a gamble**

Many people misunderstand this. The correct way to roll positions is: start with a small 10% position to test the waters. If the trend is right, then use the profits to add more. Gradually increase the position size with the trend, never against it or recklessly.

Only then can you catch the tail end of big trends, rather than being washed back to the beach by waves.

**Those who can do the math win; those who can't lose**

As long as you do two things—limit single trade loss to no more than 2%, and maintain a profit-to-loss ratio of at least 3:1—even with a win rate of only 34%, you can achieve stable profits mathematically.

You will gradually realize that liquidation is not fate; stable profitability is inevitable. Contract trading is not about passion or luck; it’s about position management, rhythm control, and disciplined execution.

Remember: those who can control losses will ultimately laugh last. Those who can't, even if they win ten times, will be wiped out on the eleventh.