CoinEx | Leverage Strategies that Help Newbies Get Started with Contract Trading

The little things count: the devil is in the details

A widely-accepted view about contract trading is that it is only for seasoned investors. This misconception is rooted in the belief that veterans are better at reading the market, while newbies could suffer from forced liquidation at any moment. However, the key to contract trading is in the details, such as setting the leverage rate. As long as a valid leverage rate is set, liquidation is rare even for beginners.

A tip for beginners: low margin & low leverage

In the contract market, newbies should be careful with two settings: margin and leverage. To be more specific, there are four different combinations: high margin & high leverage; high margin & low leverage; low margin & low leverage; and low margin & high leverage.

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