Contract trading is different from our usual spot trading. It is not buying and selling physical assets, but investing and managing risk through the buying and selling of contracts.

First, let's talk about the basic concept of contract trading. The biggest difference from spot trading is that in contract trading, you buy a 'contract,' which allows you to go long—meaning bullish—or go short—meaning bearish, and you can also use leverage, which amplifies both profits and risks. In contrast, spot trading only allows you to go long by directly buying physical assets, where both risks and returns are relatively smaller.

There are a few terms that need to be understood:

- Leverage: This means controlling a large amount of contracts with a small principal, which can amplify profits, but also losses.

- Long and Short: Going long means bullish, while going short means bearish; both directions can be operated.

- Margin: When opening a contract, you need to invest principal, which represents the maximum loss you can tolerate.

- Liquidation: If your losses approach the limit of your margin, the system will automatically close your position to prevent further losses.

- Funding Rate: This mainly exists in perpetual contracts, where both long and short parties periodically pay each other to keep the contract price close to the spot price.

- Transaction Fee: You have to pay a fee for each position opened or closed, which is especially important to note during frequent trading.

- Take Profit and Stop Loss: Set profit and loss price points in advance, and the system will automatically close the position at that time, helping to secure profits and protect your principal.

Now let's discuss the differences between contract trading and spot trading:

The trading objects are different; spot is physical, while contracts are agreements;

The profit-making methods are also different; spot can only make money by going long, while contracts can make money by going long or short;

In terms of leverage, spot generally does not use leverage, while contracts can use high leverage;

Additionally, there are differences in delivery and holding; spot can be held long-term, while contracts have expiration or liquidation mechanisms.