#数字资产市场洞察 Newbie pitfalls in Futures Trading - let me explain it clearly this time.

In the crypto world, the easiest way to get excited is to hear the word "Futures". Many people rush in without even understanding the rules, and within two or three days, they get harvested by the market. Today, let's start with the basics and break down the gameplay of futures trading.

**What exactly is a Futures Trading?**

First, let's talk about the most important point: Futures Trading does not require you to actually hold the coins.

You just need to determine which direction the price is going. If you judge correctly, you make money; if you judge incorrectly, you lose money. It's that simple and straightforward.

Bullish? Then go long. Bearish? Then go short.

Essentially, what you are buying is not the coin, but betting on price fluctuations. Once you understand this point, the logic behind it becomes clear.

**What do the two types of contracts look like**

Perpetual contracts have no expiration date; you can hold them for as long as you want. They utilize a mechanism called "funding rate" to keep the price in sync with the spot price, where long and short positions pay fees to each other to maintain balance.

Futures trading is different - there is a clear expiration date. On the expiration day, it is settled in a lump sum at the spot price. The common types in the market are the current season and the next season.

**Several Concepts You Must Understand**

The number of contracts is the minimum unit of the contract, but the face value of each contract varies greatly among different cryptocurrencies. Leverage is easier to understand—it can amplify profits, but it also amplifies losses just as quickly. With 10x leverage, if the price drops by just 10%, your account will be wiped out.

Opening a position means initiating a trade (going long or short), while closing a position means concluding the trade and locking in profits or losses. You can close at market price quickly or use a limit order to wait for a better price.

Liquidation is a rather frightening mechanism - when your margin is insufficient, the system will automatically close your position to prevent losses from exceeding your account balance.

**What truly saves lives is risk control**

To be honest, the risk of Futures Trading depends on how you use it.

The first thing to control is the leverage ratio. Keeping it within 5 times is the safest—this way, if the coin price drops by 20%, you will only be liquidated; but if you use 10 times, a 10% drop will end it. High leverage may seem to yield quick profits, but it's actually just accelerating the loss of money.

The single stop loss should ideally be set within 3% of the principal. Assuming you have 100,000 yuan, then each trade can lose a maximum of 3,000 yuan. This way, even if you lose three times in a row, the account will still retain 91% of the principal and can continue to participate in the market.

Choosing the right cryptocurrency is crucial. Major coins like BTC and ETH have a market cap that makes manipulation costs too high, resulting in more predictable fluctuations, making them less susceptible to malicious dumping. Although small coins may seem exciting due to their volatility, they actually carry risks that are disproportionately large, posing traps for newbies.

Trading hours also matter. From 9 AM to 6 PM, during this daytime period, there are many participants, good liquidity, and price fluctuations are more logical. At 3 AM, liquidations frequently occur due to poor liquidity and irregular fluctuations, which is a complete nightmare for newbies.

**Final Words**

Futures Trading can indeed make money quickly in the short term, but to profit steadily in the long term, it's never just about luck or pure technical analysis – it's about directional judgment, execution discipline, and most importantly, risk control. Without these three, even the best market conditions are in vain.