Recently, a fan found me and said that they were on the right track, but the order was held for four days and finally lost 1000U to funding fees. After getting liquidated, the market skyrocketed, and their mindset broke.

Actually, this is not the market's fault, but rather that you haven't understood the rules of contract trading. The truth about contracts is not simply about rising and falling, but rather some invisible traps. Many people ignore these details and ultimately fall into the pit.
Today I will reveal these common pitfalls to everyone. By avoiding them, your journey in contracts may become more stable.
The first pitfall: funding fees, quietly eating away at your profits.
Many people focus on the candlestick chart but ignore the impact of funding fees. Funding fees are charged every 8 hours, and the platform will charge fees based on the direction of your long and short orders.
If you go long and the rate is positive, you have to pay the shorts; if you go short and the rate is negative, the shorts have to pay the longs.
For example, you go long, the direction is correct, but you hold the position for several days and end up paying a few hundred U in funding fees, and finally get liquidated. After closing the position, the market takes off.
Pitfall Avoidance Suggestions:
Avoid high fee time periods.
Control the holding time, preferably not exceeding 8 hours.
If the direction is clear, try to be on the side of the counter-trend funding fees.
The second pitfall: the liquidation price is not the line you calculated.
Many people think that a 10x leverage drop of 10% will lead to Get Liquidated, but they get forcibly liquidated after a 5% drop. Why?
The platform will add a liquidation fee, and the actual liquidation price is lower than what you calculated.
Solution:
Do not use full margin; use the isolated margin mode to protect yourself.
Keep the leverage between 3 to 5 times to avoid high leverage risks.
Leave sufficient margin, extend the liquidation line, and give yourself more time to rebound.
The third pit: high leverage = slaughter knife
100x leverage looks exciting, but the hidden costs are significant. The fees and funding costs are calculated based on the borrowed funds, meaning that even if the direction is right and you make a profit of a few hundred USD, you might end up losing money when settling.
Suggestion:
High leverage shorting, low leverage holding long.
The higher the leverage, the greater the risk, don't act impulsively.
Exchanges are not afraid of you making money; they are afraid of you understanding the rules!
Many people think that contract trading is just about watching the market, but those who can make money are often the ones who understand these rules.
The most feared thing in contracts is not the market, but your lack of understanding of the rules.
It's very difficult to continue in this market relying on just one person.
Now, I have a repaired road here, will you walk it?

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