📉 💸

89% of futures traders are liquidated in their first month because they ignore the invisible tax eating their margins alive. When I first started, I treated my $5,400 loss like bad luck, but looking back, I realize I was bleeding out daily through funding rates I didn't even know existed. Funding is the mechanism that keeps the perpetual contract price anchored to the spot price. If the funding rate is positive, longs pay shorts. If it is negative, shorts pay longs. Most retail traders enter a position based on technicals alone, completely oblivious to the fact that they are essentially paying a recurring premium just to hold their seat at the table.

Let’s look at the math. Imagine you are holding a $50,000 position in...