Which is easier, 10x or 75x leverage trading for perpetual contracts?
- WBOYOriginal
- 2024-08-08 13:07:00608browse
10x leverage trading is simpler than 75x leverage trading because the leverage ratio is lower, the risk is smaller, and traders only use 10% of their own funds to trade. The 75x leverage trading has extremely high leverage and great risks. Traders only use 1.33% of their own funds to trade. Even small market fluctuations may lead to huge losses, so it is more suitable for experienced traders.
Perpetual Contract 10x and 75x Leverage Trading: Which is Easier?
Perpetual contracts are a type of cryptocurrency derivative that allow traders to increase the size of their trades by borrowing funds. Leveraged trading can magnify returns, but also increases risks.
Answer the question:
10x leverage trading is simpler than 75x leverage trading.
Detailed description:
10x leverage trading
- Leverage is lower and the risk is smaller.
- Traders only use 10% of their own funds for trading, and the remaining 90% is lent by the platform.
- Traders need to monitor positions and stop losses in time to avoid larger losses.
75 times leverage trading
- The leverage ratio is extremely high and the risk is extremely high.
- Traders use only 1.33% of their own funds for trading, with the remaining 98.67% lent by the platform.
- This extremely high leverage allows even small market movements to lead to huge losses.
- Traders must have a deep understanding and high concentration of market trends, and be able to withstand huge losses.
Therefore, 10x leverage trading is an easier option for inexperienced traders or those with lower risk tolerance. It provides greater security and allows traders to amplify gains while controlling risk. On the other hand, 75x leverage trading is only suitable for experienced traders who can tolerate higher risks and are able to make decisions quickly.
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