Will the higher the perpetual contract multiple, the more money will be earned? What should newbies pay attention to?

The higher the perpetual contract multiple, the more you will earn. Higher multiples bring higher potential profits, but are also accompanied by higher risks, including: increased margin requirements, greater sensitivity to fluctuations, psychological pressure, and increased transaction costs. It is recommended to start with a low multiple, gradually increase the multiple based on risk tolerance and capital amount, and always use stop loss orders to manage risk.

The higher the perpetual contract multiple, the more you will earn?

Answer: Not necessarily.

Explanation:

Perpetual contract multiple refers to the ratio of the contract size used by traders to the funds available in the trading account. A higher multiple means traders use more capital to trade. While a higher multiple may result in higher potential profits, it also increases risk.

Things to note for newbies:

• Higher Risk: The higher the multiple, means the more money the trader can lose.
• Margin Requirements: The higher the multiple, the higher the required margin. If a trader is unable to meet margin requirements, it may result in liquidation.
• Volatility: Perpetual contracts have higher leverage and volatility. The higher the multiple, the more sensitive the trader is to market fluctuations.
• Psychological Factors: Trading with high multiples can put pressure on traders and affect their decision-making.
• Transaction Costs and Slippage: Trading with high multiples usually results in higher transaction costs and slippage.

Recommendations for choosing an appropriate multiple:

• Consider personal risk tolerance and amount of capital.
• Start with a lower multiplier and gradually increase it as you gain experience.
• Always use stop loss orders to manage risk.
• Understand the mechanism and risks of perpetual contracts.
• Avoid blindly chasing potential profits brought by high multiples.

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