Brothers, pay attention to trading contracts! Do you often find that as soon as you open a position, it reverses, and as soon as you close a position, it skyrockets?
Clearly you saw the right direction, but in the end, you lose everything?
Today, this is the most hardcore contract science + practical pitfall avoidance guide on the internet, which will help you thoroughly understand the underlying logic of contracts, hidden rules, and funding rate traps so you can pay less tuition.
Do you think contracts are about buying and selling Bitcoin? Wrong! A contract is a 'betting agreement,' and the exchange is just the dealer, while your profits come entirely from the losses of other gamblers!
Going long = betting on a rise
Going short = betting on a fall
But here comes the problem—why did you get the direction right, but still get liquidated? ......
The three biggest secrets that the exchange doesn’t want you to know!
Do you think the funding rate only charges a fee every 8 hours? Too naïve! When the rate is extremely high, the exchange is forcing you to choose sides!
Rate > 0: Longs pay Shorts
Rate < 0: Shorts pay Longs
Practical tips: If the rate is over 0.1% for three consecutive times, don't go long! The exchange is likely to liquidate longs!
Liquidation price ≠ theoretical liquidation price!
Do you think a 10x leverage drop of 10% means liquidation? Wrong! The actual liquidation price will be closer than the theoretical value!
Why? Because the exchange charges an extremely high liquidation fee, and your margin will be wiped out!
Leverage magnifies not only profit but also fees and funding costs!
Many people think that if they open 100x leverage, they earn 100 times? Too young!
Fees: Opening + closing positions, calculated based on the trading volume after leverage!
Funding costs: Also calculated based on the leveraged position, high-frequency trading can drain your principal!
Core strategy: High leverage is only suitable for short-term sniping; holding positions for over 4 hours will definitely result in being harvested by the funding rate!
Rolling positions are the nuclear weapon of full position mode, using profits to continue opening positions can earn you hundreds of times when the market conditions align!
But once it reverses, the full position mode goes straight to zero!
My advice: Use only 50% of your profits for rolling positions, always leave a way out!
Why are you always “targeted for liquidation”?
90% of liquidation orders are concentrated at a few key price levels; do you think it’s just bad luck?
Actually……
I am Huang Lin, skilled in medium-short-term contracts and medium-long-term spot layouts, sharing investment techniques daily. For detailed strategy teaching, contact @黄霖资本 . Come!