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A frantic voice call in the middle of the night, a friend's voice filled with panic—
"I used 10,000 USDT full margin with 50x leverage to go long, and I got liquidated after just a 3% drop. What’s going on?"
Opening the trading screenshot, I saw they had put in 9,500 USDT full margin, with no stop-loss at all. This is the most common "suicidal operation" in the crypto world.
Many people have a fatal misconception about full margin: they think that having a large amount of funds allows them to withstand risks. The reality is quite the opposite—misusing full margin can lead to faster death.
**The real killer isn’t the leverage multiple, but the position size ratio**
With the same account, 1,000 USDT principal:
If you open a 10x leverage with 900 USDT, even a 5% adverse move will wipe out the account.
If you only use 100 USDT to open 10x leverage, even a 50% market reversal, and you’re still fine.
This friend put 95% of their principal into the position, with 10x leverage, and a slight correction was enough to be ruthlessly liquidated by the market.
**Three ironclad rules, I’ve had zero liquidations and doubled my account in half a year**
*First: No single position exceeds 20% of total funds*
For example, with a 10,000 USDT account, never invest more than 2,000 USDT in one trade. Even if you get the direction wrong, a 10% stop-loss only loses 200 USDT, which is negligible to the total funds, always leaving room to turn things around.
*Second: Limit maximum loss per trade to 3%*
Using 2,000 USDT with 10x leverage, and setting a 1.5% stop-loss in advance, the maximum loss is 300 USDT (3% of total funds). Even if you get it wrong five or six times, you won’t die. That’s the art of staying alive.
*Third: Wait and watch during sideways markets, never chase after profits*
Only participate in trend breakouts; during consolidation phases, no matter how tempting, hold your position. Once you open a position, never add to it, and eliminate emotional trading completely.
**The essence of full margin is a fault-tolerance mechanism, not a gambling tool**
The concept of full margin was designed to leave enough buffer for natural market fluctuations. But the prerequisite is to try with light positions and strict risk control.
I have a fan who used to blow up his account every month, but after following these three rules, he turned 5,000 USDT into 8,000 USDT in three months. His words were:
"Before, I thought full margin was gambling my life away. Now I realize, full margin is actually about surviving more steadily, living longer."
**The number one rule in crypto: surviving is more important than making money**
In this market, only those who see the next cycle can profit; those who get liquidated midway see nothing. A liquidation wipes out months of gains. Proper position sizing and precise risk control are not conservative—they are essential for long-term survival.
If you manage your positions well, regardless of market rises or falls, you will have a stable profit expectation. If you do poorly, even the best market won’t save you.