Contract Three Blades - Funding Fee, Liquidation Line, 100x Leverage, specifically targeting those who ignore the rules

Don't just stare at the candlestick charts; the pitfalls of the rules are the true culprit behind liquidation!

Last night, a fan named Xiaoming sent me a private message:

The direction was right, held for 4 days, lost 1000U to the funding fee, then liquidated, and the next day the market took off... A typical case of 'losing due to rules, winning on market movements'.

① Funding Fee - Harvest once every 8 hours

Positive rate means longs pay 'rent' to shorts; negative means the opposite.

2024-12-01 20:00 (UTC+8) BTC funding rate 0.15%, if fully leveraged for two more days, your principal is first deducted by 2.4%, and if the market doesn't move, you've already lost.

Countermeasure: If the funding rate >0.1% for two consecutive rounds, it's time to exit; holding period ≤ 8 hours; do the opposite of the funding fee side to collect free red envelopes.

② Liquidation Line - A step ahead of your calculations

With 10x leverage, do you think a 10% drop will trigger liquidation? The platform adds 'liquidation fees', and in reality, a 5% drop can send you packing.

Solution: Use isolated margin + 3-5x leverage, keep enough margin, and push the liquidation line further away.

③ High Leverage - The Butcher's Knife

100x may seem thrilling, but fees and funding costs are charged based on the 'total borrowed amount'.

You earn 200U, but at settlement, you might lose 50U.

Motto: High leverage short-term trades ≤ 1 hour, low leverage long-term holds ≥ 1 daily line; the higher the leverage, the faster the grass grows on the grave.

Exchanges are not afraid of your losses; they fear you understanding the tricks.

You can guess the direction, but you must understand the rules - first learn to dodge the knives, then talk about eating meat.

Those who can survive in the market and still make money have always been the ones brave enough to reach out first.

Are you ready? @bit福多多

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