Is futures trading equivalent to gambling? Many frens often choose 10x, 20x, 50x, or even 100x leverage. With funds just invested, they may face the risk of Get Liquidated overnight!

Those who choose high leverage can be mainly divided into two categories:
The first type is enthusiastic about the psychology of gamblers who like to go all in and pursue excitement with a small bet for a big win;
The second type is Newbie, who knows nothing about contract operation and doesn't know how to plan their Position. Often, their contract journey ends before it even begins.
In Futures Trading, Position management is crucial, as it can maximize capital efficiency and effectively mitigate risks.
Flexible fund allocation is crucial. For example, if you plan to open a Position of 10,000U, you can choose to use 1000U with 10x leverage or 500U with 20x leverage. At the same time, set a stop-loss point of 1%-3%, use 10% of the funds to strive for 100% of the profits, and ensure that the losses are within a controllable range.
If you blindly choose 10000U to open 10x or 20x leverage, once the market fluctuates, you will have no margin for error, and it is easy to suffer heavy losses due to a single mistake, or even lead to a breakdown in mentality.
Using high leverage to borrow funds far exceeding the principal for speculation, Get Liquidated is the norm, while profits are the minority. Before using contracts, it is essential to understand basic concepts such as leverage, funding rate, etc. If you don't understand anything, once you Get Liquidated, you will only blame the tool itself.
Therefore, it is crucial to plan your Position reasonably in Futures Trading.