2025-12-25 06:22:42

Many people stumble in contract trading. They choose the right direction, but their accounts still end up wiped out. How does this phenomenon actually occur? It's not due to market conditions not cooperating, but rather a lack of deep understanding of the underlying rules of contract trading.

There are three truly deadly traps, and hitting any one of them can lead to total loss.

**First is the hidden deduction of funding fees.** Holding a contract position is not free. The system settles funding fees every 8 hours. When the rate is positive, longs pay; when negative, shorts pay. Many are accustomed to holding full positions and resisting, seemingly not hitting liquidation levels on the surface, but unaware that their accounts are silently being eroded by funding fees. How to break this? When the rate is high, don’t stubbornly hold; avoid crossing multiple settlement periods. When the direction is confirmed, actively choose the side that can earn funding fee income.

**Second is that the liquidation threshold is closer than expected.** The calculated liquidation price is only theoretical. When the exchange actually liquidates, additional transaction fees are added. As a result, a slight market fluctuation can wipe out your position. The key to defense is simple: first, never hold full positions; second, use isolated margin mode instead of cross margin; keep leverage between 3 to 5 times to ensure sufficient margin flexibility.

**Finally, the hidden killer of high leverage.** The higher the leverage, the more aggressively the transaction fees and funding costs are deducted. Many people actually choose the right direction but end up not making money, and the main culprit is often here.

Contract trading is not fundamentally about betting on rise or fall, but about testing your understanding and control of the rules. True experts don’t just make one profit and stop; they master the rules, avoid every trap, and stay alive. As long as you are alive, there’s still a chance to keep making money.

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WagmiOrRekt

· 5h ago

Watching the right direction or getting liquidated, this is just too absurd. The funding fee part is indeed silently cutting the leeks. Old brothers who hold full positions and resist should reflect on this. Playing with leverage without understanding it is really just giving away money, with both trading fees and funding fees acting as double bloodsuckers. Only by staying alive can you make money. This statement hits the sore spot. Is there such a big gap between betting on price movements and understanding the rules? I might just be that kind of pseudo-smart. Funding fees silently erode 24 hours a day, just thinking about it is terrifying. I previously resisted several cycles, and now it makes my scalp tingle when I think about it. Isolated margin 3 to 5 times is the only way out; full margin and full position should have been eliminated long ago. The liquidation line is like a knife from the exchange, much harsher than the price you calculated. These details can be deadly.

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SybilSlayer

· 6h ago

Full position Death God claims another life again, the funding fee thing is truly a silent meat grinder If you pick the right side, you still have to die, this is my blood and tears story from last year Leverage is not about earning more, it's about reaching zero faster Cross margin has saved me several times, full position is basically suicide If you haven't mastered the rules, playing contracts is just a waste of oxygen to stay alive I've calculated the funding fee, it can eat away half of the profit in just one month Why are there still people full position with such a close liquidation line, are you really that brave? Leverage of 3 to 5 times is recommended, don’t ask me how I know The hardest part of contracts is not predicting the right direction, but surviving to see the profit Survival is the key, not just making a profit and calling it a day

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Tokenomics911

· 6h ago

Funding fees are truly a hidden harvesting tool; so many people are quietly drained this way. Looking at the right direction doesn't help; once leverage is increased, fees start to be deducted wildly, and you can't even break even. The suggestion of 3-5x isolated margin is quite practical; full-position traders are basically destined to lose money. The detail about the liquidation line is brilliant; the theoretical liquidation price is unreliable, so you need to leave yourself some room. In plain terms, it's about taking the rules seriously; otherwise, even the right direction is useless. Staying alive is the top priority—this really hits the pain point for contract traders.

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ZKProofster

· 6h ago

ngl the funding rate thing really is the silent killer nobody talks about. seen way too many accounts get bled dry while they thought they were "safe"

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EthSandwichHero

· 6h ago

Another day of being drained by funding fees. Looking at the direction is useless, my friend. --- Going all-in and resisting hard is really asking for death. Who can withstand the暗扣 every 8 hours? --- The suggestion of 3 to 5 times leverage is still somewhat reliable. Compared to those crazy 10 or 20 times leverage, it's much more rational. --- Many people indeed can't accurately calculate the liquidation line. When you add in transaction fees, it can directly lead to a blow-up. --- The higher the fee rate, the more you need to control your position size. This is the true survival rule. --- Isolated margin mode is really a hundred times safer than full margin. Larger margin activity space makes it less likely to trigger liquidation. --- Getting the direction right but being drained by funding fees is a frustration I deeply understand. --- To put it simply, if you haven't fully understood the rules, don't play with high leverage. Losing money is only a matter of time. --- The saying "Only by staying alive can you continue to make money" is true. Those who survive until the end are the real winners.

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MindsetExpander

· 6h ago

Full position liquidation brothers, this article is written for you --- I'm just wondering, is the funding fee really a silent killer? --- Isolated margin with low leverage has saved me several times, and now I mostly operate this way --- If you’re right about the direction but still lose money, it means you haven't truly understood the market rules --- High leverage is just helping the exchange earn fees, wake up everyone --- Living is more important than making money, this statement is too absolute --- I used to try holding full positions and tough it out, the more I held, the more I lost, it's hilarious --- When the funding fee is positive, it’s really like cutting meat; learning to operate in the opposite direction is the starting point for making money

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OnchainGossiper

· 6h ago

Full position hard resistance against that group is really outrageous, funding fees are like silent death, don't wait until zero to regret --- Even if you choose the right direction, the result might still be disappointing, which is the most heartbreaking part. Ultimately, it's being drained by fees and leverage --- The 3 to 5 times leverage suggestion is reliable, much more conscientious than those advocating hundredfold leverage --- Cross margin has saved me several times, full position is just asking for death --- On the side of funding fee income, it's easy to say but hard to do, you need to keep an eye on the rate at all times --- Futures trading, in simple terms, is about playing by the rules. Those who understand make money, those who don't get liquidated --- I deeply understand that the liquidation line is closer than you think. Missing the liquidation price once makes you never dare to do it again --- A master is someone who lives long, this hits hard --- The more skilled the leverage, the harsher the fees. Many people overlook this detail --- In the end, the same old saying: surviving is more important than making money

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