In contract trading, many people only focus on price fluctuations, ignoring the underlying 'invisible rules'.
A fan's experience is quite representative: he correctly predicted the direction and held the position for four days, only to be 'eroded' by funding fees of 1000U, ultimately leading to liquidation. After closing the position, however, the market soared like a runaway horse.
The root of the problem lies not in the market, but in the rules.
Today, we reveal the three major 'invisible pitfalls' in contract trading:
First, funding fees—silent 'vampires'. Funding fees are settled every 8 hours, and when the rate is positive, longs must pay shorts;
when the rate is negative, the opposite applies. Many people go long with full positions, and even if the direction is correct, they may 'bleed' too much due to continuously high fees, leaving little capital before the market starts.
It is advisable to avoid high fee periods (e.g., >0.1%), shorten holding times, and avoid becoming the party disadvantaged by fees.
Second, the forced liquidation line—a 'cliff' within reach. Do you think a 10x leverage needs a 10% drop to get liquidated? In reality, with the forced liquidation fee included, a drop of 5%-6% can lead to forced liquidation. The strategy is to avoid full positions, utilize the 'isolated margin mode', control leverage at 3-5 times, and reserve enough margin.
Third, high leverage—a double-edged sword. 100x leverage may seem tempting, but both transaction fees and funding fees are calculated based on the borrowing scale. Even if the direction is correct, profits may be consumed by fees.
Remember, high leverage is only suitable for ultra-short-term testing; to grasp trends, leverage should be reduced. The higher the leverage, the smaller the margin for error.
Exchanges are not afraid of your losses, but rather fear your understanding of the rules. In this market, it is not the ability to predict that counts, but the understanding and discipline regarding the rules.
Want to avoid pitfalls and move forward steadily?
I am always on standby. Real trading begins with a profound understanding of the rules. Most people fall into difficulties, not due to lack of effort, but rather due to a lack of guidance.
The market is always present, but opportunities do not wait for anyone—follow the right guide to navigate out of the fog @慢慢赢_实盘带单