Recently, many people around me have been discussing a common topic—how to choose the right leverage multiple? Almost everyone defaults to high leverage equals high risk, and when it comes to leverage, there's an instinctive fear.

I want to ask back: when you trade spot without leverage, have you ever lost money? Clearly, everyone has. So, is there a necessary connection between profit/loss and leverage? Actually, no. The fundamental factor determining win or loss is whether the direction judgment is correct.

The beauty of leverage lies here—it is both the source of risk and the attraction. Betting small to win big, amplifying gains while limiting losses—that's the core value of leverage. Low cost is truly the real advantage. Remember when a major exchange promoted 0-margin leveraged trading? The cost was reduced to zero, the principal became the exchange’s, and your risk was actually zero. The worst case was just paying back the borrowed principal. Is this kind of mechanism risky?

Here's a numerical example: using 100U with 50x leverage on a perpetual contract of a certain coin, a position of 1000 lots, with a margin of about 4 dollars. A price move of 0.001 essentially doubles the principal. Got it wrong? No problem, you have a 200x buffer to withstand the move. Even if you get liquidated in the end, the loss is just that 100U. Who in trading circles hasn't lost that much?

Looking at it from another angle: with 50x leverage, you get 25 chances to succeed. I don’t believe you can fail all 25 times. If that were true, the problem isn’t leverage itself, but that you’re simply not cut out for this line of work. So my straightforward view is—of course, the higher the leverage, the better.