The dilemma of leverage selection in perpetual contracts: The core question ZEC traders must ask

Current ZEC Price: $404.45 | 24-Hour Change: -1.52%

Why is it so difficult to choose the leverage multiple?

This is the most common confusion among crypto traders. Some are determined to go 50x, some have tasted the bitter after trying 30x, and others boast that 100x is “no big deal.”

The key is—nobody can give a standard answer because it involves more than just numbers; it’s about understanding risk, capital, and psychology.

Perpetual contracts are so attractive precisely because they “never expire.” You can hold an unlimited position without liquidation, which sounds like a huge benefit. But in reality, this freedom hides endless temptations: you can adjust your position at any time, keep adding leverage, and infinitely amplify gains. The problem is—risk is also infinitely magnified.

Let’s look at this real data comparison

Taking ZEC as an example, with the same initial margin, the capacity to withstand pressure varies greatly at different multiples:

• 30x leverage: requires 16U margin to control a full position
• 50x leverage: only needs 10U margin
• 100x leverage: only needs 5U margin

This sounds very tempting, but essentially—the higher the multiple, the smaller the price fluctuation range you can tolerate. Just a slight market reversal can directly threaten your position.

Some traders say they open positions with 30–50x leverage. When asked why not 100x, they reply “it blows up too fast.” This answer actually reveals the truth: high leverage doesn’t determine safety; it’s about how much reaction time the market gives you. The shorter the time, the higher the demands on your mindset and stop-loss discipline.

The fundamental reason that causes liquidation

Statistics show that most traders get liquidated not because they choose too high a multiple, but because—poor position management and insufficient margin buffer.

A common mistake is: using a few hundred USDT to control a position worth tens of thousands, with a wishful thinking of leaving no buffer. As a result, a normal market fluctuation can wipe out the position immediately. The pain point isn’t losing money itself, but “predicting the right direction but not making any profit.”

Sometimes your judgment is completely correct, but due to intermediate fluctuations, you get stopped out. You see the market move as you expected, but you can only regret missing the profit.

Three survival rules for perpetual contracts

Rule 1: Isolated margin is better than cross margin
Isolated margin ensures each position is independent; a loss in one won’t affect others. Cross margin means putting all funds together; if any sudden crash occurs, the entire account could be wiped out.

Rule 2: Stop-loss is mandatory, not optional
Not setting a stop-loss is equivalent to heading straight for liquidation. Holding a position might seem like “perseverance,” but it’s actually a gradual risk acceptance. Once you get used to holding through swings, your psychological defenses will gradually break down.

Rule 3: Set reasonable targets
Instead of dreaming of overnight riches, be pragmatic. For example, with 5000 USDT capital, consistently earning 50–100 USDT daily may seem modest, but with compound interest, the growth rate can far exceed expectations.

What is leverage fundamentally?

Leverage is a magnifying glass—it amplifies not the market itself, but your mindset, discipline, and execution.

The market itself has no right or wrong; the difference lies in whether participants can control their psychological fluctuations. Most loss stories end not because the market is brutal, but because traders are too emotional, letting feelings replace strategy.

Finally, this sentence is worth pondering repeatedly: A 100x position with strict stop-loss discipline is far safer than a 5x position without discipline.

Perpetual contract trading has never been about gambling to win; it’s about winning through a system. Leverage itself isn’t wrong; losing control is deadly.