MYX taught me a lesson: go long loses 1x, shorting loses 100x?

Those who are new to futures trading should take a look at this. Many people think that shorting and going long are equally risky, but that's not the case at all.

The risks of going long are very “kind”: Buying 10 MYX contracts costs 100 dollars. In the worst-case scenario, if the price goes to zero, you will lose 100 dollars. The maximum loss is your invested principal, and you cannot lose more than 1 times.

But shorting? It can drain you dry: With 10x leverage, a short position requires 100 yuan in margin. If the price skyrockets from 10 yuan to 1000 yuan, you would need 10,000 yuan to close the position. A single loss of 9,900 yuan is 99 times the principal. If it continues to rise, the losses are limitless. This is why some say that shorting can lead to losses of 100 times — it's not an exaggeration, it's true.

Why is the difference so big?

• go long: the lowest price is 0, losses are capped
• shorting: price theory has no upper limit, the higher the leverage, the more fatal it is
• Once a liquidation is triggered, the exchange will forcibly close your position, and the loss is instantly confirmed.

Common Traits of MYX Victims: Leverage set too high (20x, 50x) + no stop loss set + holding on stubbornly without taking profits at the peak.

Three Lines to Live and Leave the Market:

1. Leverage should not exceed 10x, beginners should use 5x.
2. Every trade must set a stop loss.
3. Only play with money you can afford to lose

Shorting itself is not a forbidden area, but it requires respect. Leverage is a double-edged sword, and maybe next time it will be your turn to ride the waves.