Who can understand? Recently, the crypto trading market has become a liquidation scene, with people posting loss screenshots and crying every day—an uproar that could circle the globe three times. But do you know? Amidst this chaos, some people are calmly harvesting profits with a cup of tea, earning full pots and bowls.

I've been in this circle for 8 years, and I must clarify: contract trading is not some high-leverage gambling that’s more exciting the higher the leverage. Those who keep shouting "Leverage destroys lives" either haven't grasped the core point or have suffered losses because they didn't manage risk properly. True professionals in contracts play not by how brave they are, but by whether they can firmly control the risk—that's the key to counterattack.

**Don’t be fooled by the platform’s numbers**

The most common trap for beginners is obsessing over the platform’s displayed 5x, 10x leverage, thinking smaller numbers are safer and larger numbers are riskier. Honestly, this is purely a "brainwash" from the platform. I never use the platform’s displayed leverage to measure risk.

I use my own "Real Leverage Calculation Method":

**Real Leverage = Total Position Value ÷ Maximum Loss You Can Tolerate**

This formula is more effective than any technical indicator. Remember it.

What does it mean specifically? Suppose you have $10,000 in your account, and you’ve set a red line in your mind—that you won’t lose more than $500 on this trade, no matter what. But out of impulse, you open a position worth $30,000. The platform might show only 10x leverage, but using my formula: $30,000 ÷ $500 = 60x. Your real leverage has skyrocketed to 60x!

See the difference? Just this one understanding can help you avoid 98% of the losses.