$FRAX From these two FRAXUSDT perp positions, the difference isn’t luck, it’s structure and timing. In the first trade, the entry was at 1.1387 and price moved in your favor to around 1.1543. With cross 16x leverage, even a relatively small upward move translated into a +21.34% ROI, while the margin ratio stayed low at 7.59%, meaning liquidation risk was well controlled and the position had breathing room. That’s why the PNL is green even though the absolute profit is small, leverage amplified the correct direction.
In the second trade, the entry was at 1.1116 but price dropped to nearly 1.0640. With cross 10x leverage, that downside move worked against you and quickly ate into margin, pushing ROI to -47.36%. The margin ratio jumped to 14.82%, signaling higher liquidation pressure, and the loss accelerated because leveraged positions punish wrong direction faster than they reward patience.
The core takeaway here is simple but powerful: leverage magnifies direction, not accuracy. A clean entry aligned with momentum and controlled margin gives you time and confidence, while a slightly wrong entry under leverage can snowball into heavy percentage losses even if the market doesn’t move dramatically. Managing entry quality, leverage size, and margin safety matters more than chasing bigger position sizes.
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