A lot of people don’t understand one thing: holding 1,000U and opening 10x leverage, versus using 2,000U to open 5x leverage—both have a nominal position of 10,000U. So what’s the actual difference? $MYX

On the surface, it looks like a math problem, but in reality, it’s a "life-or-death" scenario in the contract trading world.

I grew my account from less than 5,000U to 200,000U, blowing up my account three times along the way—each time learning hard lessons paid in blood. Looking back now, I finally understand: having the same nominal position doesn’t mean your chances of survival are the same. Risk resistance? Liquidation distance? Can you hold out until a reversal?—the difference is huge.

Here’s a true story. The first time, I went all-in with 1,000U on $SOL with 10x leverage, thinking, "It’s a 10,000U position anyway, let’s go for it." What happened? The price only dipped 1.2%, and my margin was wiped out—instant liquidation, without even time to react. What’s worse, the price rebounded afterward, and I could only watch from the sidelines.

Later, I got smarter. In a similar market scenario, I used 2,000U to open 5x leverage. Faced with the same 1.2% dip, my account took a hit but didn’t blow up. I held on until the rebound, not only recovering but making over 300U profit.

This isn’t about luck—it’s about how you pair leverage with your principal.

Let’s break it down (taking a long position on a mainstream coin as an example):

**Scenario 1: 1,000U with 10x leverage**
You’re actually using 100U as margin, with 900U as available funds. If the price drops 1%, your 10,000U position loses 100U—the margin is wiped out, and you’re liquidated.

**Scenario 2: 2,000U with 5x leverage**
You’re using 400U as margin, with 1,600U available. A 1% drop also means a 100U loss, but you still have 300U margin left—you can survive it. Even if the drop reaches 3%, you’d lose 300U, but you wouldn’t be wiped out immediately.

10x leverage is like walking a tightrope barefoot, while 5x leverage is at least having a safety harness. Is the chance of falling really the same?

More importantly: with 2,000U and 5x leverage, you have more available funds, so when the market reverses, you have room to add to your position or adjust your stop-loss; with 1,000U and 10x leverage, you’re all in—any turbulence and it’s game over.

In contract trading, the key is two words: **stay alive**. Only if you survive do you have the right to talk about making money. 10x leverage has too little margin for error—even if you’re right, small fluctuations can knock you out early; with 5x leverage and higher principal, you keep your offensive capability and give yourself room for mistakes—that’s the foundation for long-term profitability.

Stop dreaming of getting rich quick by going all-in. First, learn how not to get wiped out by the market. If you think this makes sense, share it with those friends who are always going full leverage.