2025-12-31 18:21:28

A common phenomenon among contract beginners is: they get the direction right but are completely wiped out due to various hidden costs.

I've heard many typical complaints: clearly judging the trend correctly, but holding on stubbornly for a few days results in losing everything due to funding fees, and by the time the market rebounds, they've already been liquidated. In fact, it's not the market cheating you, but a lack of understanding of the underlying contract mechanisms.

**The first big pit: "Hidden harvesting" of funding fees**

Most people focus on K-line trends but overlook the invisible bloodsucking channel of funding fees. Funding fees are settled every 8 hours; it seems insignificant, but in reality, they can carve a big hole in your account. When the rate is positive, longs pay shorts; when negative, the opposite. Holding a full position and enduring for two days? Hundreds of USD can vanish just like that, and with the last dip, you'll be liquidated, only to watch the rebound helplessly.

How to avoid? First, stay away from periods with high rates exceeding 0.1%; second, do not hold a single position for more than 8 hours; third, prioritize taking the side with negative funding rates.

**The second big pit: The liquidation line is completely different from what you think**

Leverage of 10x theoretically means a 10% drop causes liquidation? Wrong. In reality, liquidation occurs at a 5% drop. The reason is that the platform adds liquidation fee costs, pushing the liquidation line forward. Seemingly safe leverage is full of tricks when executed.

Solution: avoid full-position operations, switch to isolated margin mode, keep leverage within a reasonable range of 3-5x, and reserve enough margin space so that the liquidation distance can truly be extended.

**The third big pit: High leverage is like a butcher's knife**

100x leverage sounds exciting, but all fees are calculated based on the borrowed amount. Fees, funding costs, and interest on loans are astronomical. Many people end up making profits, but when settling, they end up paying more due to fees. That's why industry veterans say: the higher the leverage, the more ridiculous the risk.

The rule is simple—short-term quick trades should use high leverage, while long-term positions must lower leverage. Blindly following the 100x trend, most won't survive three months.

Exchanges aren't afraid of your losses; what they truly fear is that you understand the rules thoroughly. To survive in the contract market, don't just think about betting on the direction—first master these underlying logics.

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LeekCutter

· 5h ago

Funding fee is really an invisible killer. I held a full position for three days and was actually drained of over five hundred without realizing how the money disappeared. Now I understand that the market is not wrong; it's my understanding of the rules that was too shallow. No wonder experienced traders say that the higher the leverage, the faster you die. This article is quite honest, especially the part about the liquidation line. I’ve also fallen into that trap before, and it’s really not as safe as it seems when calculated. The temptation of 100x leverage is big but unplayable. It's better to stick to 3 to 5x leverage; surviving is more important than making quick money. If you catch a period where the fee rate is negative, you can save a lot. Next time, remember the 8-hour threshold. But honestly, the way these rules are designed, the exchange is really ruthless.

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GweiWatcher

· 2025-12-31 18:43

Funding fee this thing is really incredible, an 8-hour cycle that hard eats away at your U. --- Looking at my liquidation history, it's all because I didn't understand how the liquidation line is calculated. --- People using 100x leverage probably won't survive more than a month haha. --- Reverse trading with negative fees is the real trick of old foxes, making money while also snatching the exchange's wool. --- Don't leverage more than 5x, or the transaction fees will bankrupt you. --- Even if the trend is correct, getting liquidated means you haven't grasped the fundamentals, I've experienced this too many times. --- Funding fees are settled every 8 hours, don't think that if you don't see it, it's fine. --- Those who go all-in on contracts are basically destined to be leek vegetables, sooner or later they'll be cut. --- Liquidation fee is like an invisible tax on the platform, you need to diversify your positions. --- Staying during high fee periods is basically asking for death, wait for negative fees to ambush.

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MetaNomad

· 2025-12-31 18:37

Funding fees are really incredible, silently draining your funds. By the time you realize it, your account is already gone.

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DevChive

· 2025-12-31 18:37

Damn, the funding fee is really crazy. I got hit for a few hundred dollars last time before I realized it. --- The liquidation line trick is too ruthless; I can't even solve a math problem to figure out when I'll be liquidated. --- 100x leverage sounds great, but once you settle, you give all your profits to the exchange. --- No wonder I keep losing; turns out the fee costs are so hidden that I can't defend against them. --- That's why experienced traders say leverage should be kept below 3x, but I just can't listen. --- Damn, even if the trend is right, I can still lose—all because of these hidden taxes. --- Funding fees are collected every 8 hours; if you hold a position for more than two days, you're done. --- 10x leverage actually equals 5x; it's all a scam. --- I need to remember the negative fee rate trick; it's better than giving away free money. --- High leverage for short-term trading leads to certain death in the long run. Have you understood this rule?

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DefiVeteran

· 2025-12-31 18:30

Oh my, funding fees really silently cut the leeks. I previously held a full position and endured three days of losses directly through. --- Wait, will the liquidation line be pulled forward due to fees? This move is too dirty. --- 100x leverage sounds exciting, but settlement fees can eat up all your profits, really. --- The key is still to control leverage, otherwise even if you're right on the direction, it's dead. --- The point about funding fees is correct; seeing it the right way can actually be worn down by the rate, incredible. --- Short-term quick in and out is the only way to dare to play high leverage; lowering leverage for long-term holdings is not wrong. --- Entering when the long position has negative fees, this trick is indeed useful, I've tried it. --- The cost of liquidation fees directly lowers the liquidation line; the platform really knows how to play. --- Why do I always end up losing after making money and settling? Turns out the fees are so harsh. --- The higher the leverage, the easier it is for the exchange to bleed you dry. This is a blood-and-tears lesson.

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