#数字资产市场动态 In contract trading, there's a common issue: correctly predicting the direction but still getting liquidated. Recently, I encountered a typical trader case—holding a position for four days, with the correct market direction, but being drained of 1000U just from funding fees. When the market finally retraced, it triggered a liquidation, and after closing the position, the market actually moved higher, causing complete emotional breakdown.

On the surface, it seems like the market is ruthless, but the core issue is a lack of understanding of the contract mechanism. Many focus only on candlestick movements, ignoring hidden fees and liquidation traps. To put it plainly, success or failure in contracts often depends not on the market itself, but on how well you understand the platform rules.

**The Hidden Cost of Funding Fees**

Funding fee cycles every 8 hours, and it's the most easily overlooked cost black hole. When going long with a positive rate, you pay the short side; when shorting with a negative rate, you pay in the opposite direction. Many people's problem is: the direction is correct, but the holding period is too long. Holding a position for four or five days, continuously bearing funding fee pressure, can eat up a significant portion of profits. Some are even wiped out before the market reverses, as ongoing fees gradually deplete their margin.

The solution isn't complicated—limit each position to no more than 8 hours, or actively choose positions opposite to the funding fee direction. For example, if the current rate is positive, consider going short or closing the position temporarily to earn the fee subsidy in the opposite direction. This isn't speculation; it's an active choice based on understanding the rules.

**Real Data on Liquidation Price**

Another common misconception: many people only consider leverage multiples and liquidation margins when calculating the liquidation line, but they overlook the platform's built-in liquidation fee costs. In theory, 10x leverage would be liquidated at a 10% decline, but in practice, it can trigger at just 5%. The reason is that the platform adds an extra risk fee when calculating the liquidation price, causing the actual liquidation point to arrive earlier than expected.

That's why it's recommended not to operate at full position size. In isolated margin mode, using 3 to 5x leverage is a relatively safe choice—amplifying gains while leaving enough buffer for market rebounds. The more margin you keep, the higher your tolerance for market volatility.

**The True Cost of High Leverage**

100x leverage sounds exciting, but the costs can be painful when you do the math. High leverage not only increases the risk of liquidation but also means all fees—trading fees, funding fees, liquidation fees—are calculated based on the borrowed amount. The more you borrow, the larger each fee becomes. Some traders make a few hundred bucks with 100x short-term trades, but after settlement, they end up losing money—that's the reason.

A more rational approach is to differentiate your holding periods: use high leverage for short-term volatility to enter and exit quickly, and low leverage for medium- to long-term trends to hold steadily. Greed and high leverage often appear together, and once this mindset takes over, losses are usually not far behind.

**Final Words**

Exchanges are never worried about retail traders making money; what they truly fear is retail traders understanding the rules. The biggest enemy in contract trading is never market volatility but a lack of understanding of the rules. Going through these pitfalls at least helps you avoid taking a long detour for half a year.