Why does my account balance decrease even though I'm clearly making a profit? 😭
The problem likely lies in funding fees! This is not the platform fee charged by the exchange, but rather the fees that are automatically settled every 8 hours between traders. It quietly eats away at your profits like a 'hidden tax.'
When are funding fees particularly high?
One-sided market: When the vast majority of people are going long, the bulls have to pay the bears;
Discrepancy between futures and spot prices: The greater the gap between futures and spot prices, the more expensive the fees;
Speculative coin frenzy: When popular coins like $PEPE, $SUI, $TAO surge or plummet, fees often spike like a roller coaster.
Beware of this deadly mistake! ⚠️
If you have a large position and hold contracts long-term, even if you are right about the direction and your account shows unrealized gains, high funding fees may eat up all your profits, leaving you with nothing in the end.
How to cope? Professional traders do this:
Check the rates before placing orders: Don't enter during high fee periods;
Stay away from overly speculative coins: Popular coins often have fee traps;
Short-term trading, exit early: Especially close positions before the fee settlement time;
Consider taking a contrarian position: If fees are extremely high and the technicals support it, you can open positions against the mainstream direction.
Be the one who 'collects rent': Stay calm and hold positions that can earn fees when most people are overzealous.
Core reminder: Funding fees are a double-edged sword. Understand the rules and use them wisely, and they can help you; ignore them, and they become the 'invisible killer' of your account. Always check the rates before trading!
(First of all, Binance does not charge any fees)
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