How can "leeks" avoid being liquidated in extreme market conditions?
Keywords: Avoid playing with futures contracts
1. If you short a futures contract, the returns are limited, but the risks are unlimited.
2. If you go long a futures contract, even low-leverage positions will be liquidated if the market crashes or there's a spike.
3. Even spot prices, such as meme coins, can rebound after a sharp drop. However, if a futures contract is liquidated, you lose all your principal. Without the green mountains, how can you find the firewood?
Contracts are only for professional traders; leeks shouldn't touch them.