I actually never understood why people open leveraged contracts; I always feel it's just too stupid. Clearly, there are implicit leverage/zero-cost leverage options available, yet they choose the method that makes it easiest to lose. Leveraging has its costs; the explicit cost is the constant erosion of funding fees, while the implicit cost is the increased risk of liquidation. For example, if you go long during a bad market, the fee rate for 1x leverage is 1% per month, but when the market picks up, you might have to bear a funding cost of 10% in a month; after adding leverage, the costs are even higher, and the risk of liquidation increases exponentially with the leverage multiplier. If you must leverage, why not take an off-exchange consumer loan and then buy spot? For instance, if your principal is 200,000, you could use a consumer loan to get 600,000, and then buy spot; this would be 4x leverage, with a funding cost of only 3% per year. (Of course, this method is not...
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