#数字资产市场动态 How to trade contracts without losing money? Listen to these veterans' painful lessons

Recently, I've seen many traders complaining. Some correctly predicted the market direction and held on for four days, only to be forcibly liquidated and lose 1000U due to funding fees, and in the end, they got wiped out. What's even more heartbreaking is that the market turned and took off—at that moment, there's nowhere to cry. To put it simply, the problem isn't that you predicted the market wrong, but that you didn't fully understand the "unspoken rules" of contracts.

**Funding Fees, silently draining your funds**

Many people focus only on candlestick charts but ignore the funding fee, this silent harvesting mechanism. It settles every 8 hours, with both longs and shorts transferring funds based on the rate. You hold a full position long, the market direction is correct, but if you're repeatedly charged hundreds of dollars in fees, you can't hold out until the market moves, and you're forced to exit. By the time the market truly takes off, you're already out of the game.

The way to avoid this trap is simple: avoid periods where the funding rate exceeds 0.1% for two consecutive rounds, keep your position duration under 8 hours, and for truly promising markets, you can even go against the trend and collect the opposing funding fees.

**Liquidation Price, always closer than you think**

Many people think that with 10x leverage, you only get liquidated if the price drops 10%, right? That's too simplistic. Once you factor in hidden costs like liquidation fees, you might be out with only a 5% drop. The actual risk is much greater than you estimate.

A smart approach is: don't go all-in immediately; switch to isolated margin mode to leave yourself a safety net. Keep leverage between 3x and 5x, and ensure sufficient margin. This way, the liquidation distance is farther, giving yourself more time to react.

**High leverage, in essence, is a trap**

100x leverage sounds exciting, but the hidden costs are terrifying. Your trading fees and funding fees are calculated based on the borrowed amount. The higher the leverage, the more outrageous these costs become. As a result, even if your prediction is correct, the costs can eat into your profits.

The correct approach is: for short-term trades, moderate leverage is fine, but for positions held over a longer period, reduce the leverage. Higher leverage exponentially increases risk, and there's no need to take that risk.

Ultimately, success or failure isn't about whether you can see through the market trends, but whether you truly understand the trading mechanisms. Exchanges are least afraid of you losing money; they are most afraid that you see through their tricks. Want to survive longer and make money in this market? Forget gambling on the market, and start gambling on the rules.

Learn more, study more, and avoid detours. 🚀