#WIF Many contract traders are found to be unfamiliar with Position size and contract multiplier.

Let me popularize some basic knowledge.
Some people say they dare not use 100x leverage in contract trading as it is easy to get liquidated. Others see screenshots of people using 50x or even 100x leverage and insist on using lower leverage to avoid getting liquidated.
Actually, these statements are not accurate, because simply looking at the multiplier doesn't make much sense. For example, I have 100u, and you also have 100u. I open 1u with a multiplier of 100, and you open 100u with a multiplier of 5. Although my multiplier is 100, I am much safer than you. Why is that?
This is related to the size of the Position. In fact, whether it is safe or not depends on the size of the Position you open. And the size of the Position = the amount of funds used for opening a position * contract multiplier. After seeing this formula, everyone should understand. In the example above, although I have a high contract multiplier, my Position is actually smaller.
So it doesn't make sense to judge the risk based solely on the multiple of the contract opened by a person without knowing the amount of funds they opened the position with.
Some people like high leverage contracts, while others prefer low leverage contracts. It's just a matter of personal preference, depending on the size of the Position.
Do you understand?