This afternoon around five, "Gen" told me, teacher, you need to open a contract and feel it out; there are many who want to learn about contracts, but just talking about the rules won't help.

I said, I only talk about the rules; if you master the technology and investment research, you should play on your own. I don't recommend trading contracts. I still vividly remember how contracts brought me back to square one!

Contract rules are more complicated than spot trading, with things like coin-based, USDT-based, isolated margin, cross margin, funding rates, liquidation charts, reverse positions, partial take profit and stop loss, full take profit and stop loss, trailing stop orders, leverage and liquidation point calculations, margin planning and liquidation point calculations, insurance, hedging, and fee calculations. There are too many things to learn before even starting. Practicing is different; if you use a higher leverage, like 50x, and you go slow, you might miss five points compared to me. If the market drops 20 points, I earn 20 points, you earn 15 points, and if you do 1W, the difference in earnings is 500 oil. Bitcoin is fine; the volatility isn't that high, but altcoins can fluctuate by dozens of percent a day, leading to much larger differences. Long-term like this, especially with large funds, can really mess with your emotions, potentially leading to hormonal imbalances.

For spot trading, as long as your investment research is good, you plan your positions well, and judge trends correctly, you can slowly build up positions at the bottom and sell as it rises according to your plan. There’s no risk of liquidation; at worst, you might choose the wrong asset and lose a bit.

I got a bit reckless and shorted LPT for 100 USDT at 10x leverage, thinking if I get liquidated, so be it. I calculated the entry and liquidation points and controlled my position. I went in with 200, and the liquidation was over 15 points; it shouldn’t liquidate. Then I went to read a book, but there were too many short sellers, and the spot price quickly dropped to 15 while the contract was only around 13. The key issue was that Binance adjusted the funding rate; normally, Bitcoin settles every 8 hours, usually at 0.00x, but LPT was -2, settling hourly. Over six hours, the funding rate cost me 200 × 0.02 = 4, and then multiplied by 6, that's 24 oil! Damn, I originally had 100 oil, and they took 24 from me, leaving me with 76. If LPT just holds for a day, my liquidation point will likely drop to around 12.5, and then if it rises a bit, I will get liquidated.

Exchanges are amazing! They can change the rules at will. I can't make a profit against you; I’ll take the loss as you please. It can drop back down, but my fate is in someone else's hands, which is very frustrating. So I stick to Bitcoin; even if I foolishly go all in at 109, if it rises this time, I can break even. At worst, I might get stuck again at 118.