

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.
The above is the detailed content of Will the higher the perpetual contract multiple, the more money will be earned? What should newbies pay attention to?. For more information, please follow other related articles on the PHP Chinese website!

Hot AI Tools

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Undress AI Tool
Undress images for free

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Hot Topics











In a devastating blow to investors, the OM Mantra cryptocurrency has collapsed by approximately 90% in the past 24 hours, with the price plummeting to $0.58.

This new financial instrument would track the token's market price, with a third-party custodian holding the underlying AVAX

Have you noticed the meteoric rise of meme coins in the cryptocurrency world? What started as an online joke has quickly evolved into a lucrative investment opportunity

Zcash was one of the top gainers during the latest market rally, reaching a high of $35.69 as traders moved a record amount of tokens out of circulation.

A group of former Kraken executives acquired U.S.-listed company Janover, which secured $42 million in venture capital funding to begin building a Solana (SOL) treasury.

The crypto market has witnessed a rebound following the recent sheer downturn. As per the exclusive market data, the total crypto market capitalization has reached $2.71Ts

As fear drives selling in the crypto market, major coins like Cardano and Solana face tough times.

Bitcoin (BTC) has outperformed Ethereum by over 85% in realized market capitalization growth, according to data provided by on-chain analytics platform Glassnode on April 10.