#比特币与黄金战争 $PIPPIN Let's talk about the real pitfalls in contract trading. Many people don't make wrong judgments; they get caught up in rules they don't understand.

A few days ago, I met a fan who correctly predicted the market direction and held onto a position for four days. Instead of gaining, they were forcibly liquidated and lost $1,000 due to funding fees, and finally got liquidated. Once the position was closed, the market immediately moved in the predicted direction. This isn't bad luck; it's a lack of understanding of how contract trading works.

**First Pitfall: Funding Fees Are the Invisible Vessels**

Many traders focus only on price movements, but funding fees are settled every 8 hours. When the rate rises, even if your prediction is correct, holding on too long can slowly drain your funds. Especially during several rounds where the rate exceeds 0.1%, full leverage is basically surrendering.

The trick is simple—when the rate is high, don't stubbornly hold. Close your position within 8 hours if possible. If you can earn from funding fees, don't do things that lose money.

**Second Pitfall: Liquidation Line Is Closer Than You Think**

People using 10x leverage think they can only be liquidated if the price drops 10%. Wrong. Besides the liquidation fee, the actual liquidation threshold is more dangerous. It may look like there's still room, but the position is already out.

How to fix this? It's not difficult—don't go all-in. Switch to isolated margin mode, keep leverage between 3x and 5x, and leave enough margin. This gives you a buffer.

**Third Pitfall: Ultra-High Leverage Is a Rake Machine**

100x leverage sounds exciting, but all fees and funding are calculated based on borrowed principal. Winning a few trades doesn't mean you're profitable; once you tally up, you'll find all profits are eaten up by rules and fees.

High leverage is only suitable for very short-term trading; lower leverage allows you to survive longer.

**Final words**: Exchanges aren't afraid of you losing money; they're afraid of you understanding the rules thoroughly. To survive in contract trading, don't bet on market direction blindly. The real gamble is how deep your understanding of the game rules is.

If you're still recklessly holding positions and arbitrarily increasing leverage, stop and think. Understand the logic of contracts before entering the market; the results will be completely different.