Have you ever wondered why the funding rates are so outrageous? The underlying logic is actually not complicated—whales can easily push a 10% or 20% increase by controlling the spot price with just a few hundred or thousand coins. How much room for manipulation is there? Contracts worth billions of dollars are being influenced by just tens of thousands of dollars in spot trading. It’s like a mouse dragging an elephant.



What does this situation mean for traders? Short sellers are continuously worn down by funding fees, watching their profits erode daily; long traders have to occasionally endure sudden price spikes. When the market structure is so unbalanced, small retail investors are actually in a very difficult position to win. Understanding this logic also explains why contract trading is so easy to lose money.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
LightningPacketLossvip
· 7h ago
Mouse dragging an elephant? I laughed. Isn't this just the daily routine of watching my short positions get drained? Poking my psyche to the point of explosion, the contracts in my hand are as fragile as paper. Got it, got it. Retail investors are just here to give away money. This fee rate is truly outrageous, giving away value every day. Why do people still trade contracts? It's obviously a trap.
View OriginalReply0
StableCoinKarenvip
· 7h ago
The analogy of a mouse dragging an elephant is brilliant. The funding rate is so bloodsucking that someone should have stepped up to address it long ago. Contracts are just a meat grinder. Once you understand this logic, you should stay away. Using tens of thousands to move hundreds of millions? It’s clear that the big players are cheating and playing games. Watching the funding rate every day and earning yields is truly despairing. It’s better not to touch leverage. A mouse vs. an elephant—I bet the mouse always wins... Just thinking about it is suffocating. Double attacks from both the needle and the funding rate—retail investors really have no way out. Now I finally understand why contracts are so scammy. Enlightening!
View OriginalReply0
consensus_failurevip
· 7h ago
The analogy of mice dragging elephants is brilliant. I get worn down by funding fees every day to the point of wanting to smash my screen. Short positions are brutally eaten alive by the rate, leaving no chance to turn things around. I spent an entire afternoon inserting orders, and the profits instantly evaporated. This system is just designed to exploit retail investors. To put it simply, the market manipulators hold all the power, moving tens of billions with just a few hundred thousand. It's outrageous. Now I finally understand why I always lose when trading contracts — it turns out I’m fighting against the entire system. This distorted market structure ensures that small retail investors are destined to be the chives. Funding fees are increasing day by day, making it impossible to defend against. Contracts are just a harvesting machine; entering again is like committing suicide.
View OriginalReply0
LeekCuttervip
· 7h ago
The analogy of the mouse dragging the elephant is brilliant. Now, even when trying to short, you have to constantly watch out for being drained by funding fees. I've seen through this method of manipulation long ago; I just don't want to change my trading style. Futures contracts are truly the banknote printing machines for the big players; retail investors are just here to give away their money. Funding rates are outrageously high, making it impossible to hold any positions. One spike in funding can directly lead to liquidation—who can play in this market?
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)