After playing with contracts for ten years, people often ask me: what leverage is the safest?

My answer might surprise you—it’s not the leverage ratio that’s truly deadly.

Perpetual contracts give you the freedom to enter and exit at any time, but they also hide the danger of instant zeroing out. Many people think that 30 times is safer than 100 times, but they only determine how long the market takes to react to you, whether it’s 3 minutes or 30 seconds. What really decides life and death is the position size and margin.

For example, with a capital of 500U and a position size of 30,000U. Even if the direction is right, a slight market fluctuation can lead to liquidation. The most frustrating way to die is not making a wrong call, but not holding out until the moment of profit.

So don’t obsess over the leverage ratio every day; remember three things that are more important than leverage:

First, using isolated margin is the bottom line. Using full margin is like betting your entire fortune, that’s not trading, that’s betting with your life. Isolated margin allows you to control your risk each time.

Second, don’t hesitate on stop-loss. Set a stop-loss as soon as you place an order, don’t expect the market to show mercy. Procrastination and hesitation are like handing a knife to a liquidation.

Third, set reasonable targets. Isn’t it nice to earn 50-100U in a day with a capital of 500U? A monthly return of 20%-40% is already top-notch.

Leverage is just a magnifying glass, amplifying not just profits but also greed, fear, and disciplinary gaps. A player with strict stop-loss at 100 times is safer than a novice casually using 5 times.

In this market, leverage is not the devil; not being able to control yourself is. The next potential target has already been laid out; how much you can keep up depends on your skills.