Dear contract players, do you often encounter this frustrating situation: the moment you enter the market, it goes against you, and just when you cut your losses, the market surges? Clearly, you saw the right direction, yet you ended up suffering painful losses?

Today, I will help everyone expose the "cover-up" of contracts and reveal the hidden rules of exchanges. Understanding this can save you three years of detours and hundreds of thousands in "tuition fees".

Don’t think that contracts are just buying and selling digital currencies! Their essence is a "betting agreement". The exchange is the house; the money you earn comes from others' liquidations, while your losses flow into the pockets of others or the exchange. Going long is betting on a rise, going short is betting on a fall, but why do you still get harvested even when you see the right direction? This brings us to the three major "dark secrets" of contracts:

1. The funding rate is the exchange's "harvesting signal"

Don’t treat the funding rate as an ordinary fee! It is a tool for the exchange to regulate: if the rate > 0, longs compensate shorts; if the rate < 0, shorts compensate longs. If one side's rate exceeds 0.1% continuously, it is a "clear harvesting" signal from the exchange. In practice, if the rate exceeds 0.1% three times in a row, don’t stubbornly hold on; reversing your position often leads to profits.

2. The liquidation price hides "invisible fees"

Newbies think that a 10x leverage needs a 10% drop to be liquidated? Wrong! When the exchange calculates the liquidation price, it adds "forced liquidation fees" and "slippage costs" as hidden fees, often leading to liquidation after a market drop of 8%-9%, wiping out the margin.

3. High leverage is a "high-cost trap"

Don’t think that the higher the leverage, the faster the profit! With 100x or 200x leverage, the fees and funding costs are calculated based on the enlarged position, and if held for over 4 hours, high-frequency fees can drain the principal. High leverage is only suitable for short-term sniping; enter and exit quickly, take profits when available, and never get too attached to the position.

Let’s talk about full position "rolling over": it is a "double-edged sword". When the market is favorable, increasing your position can yield hundreds of times, but when the market reverses, your entire position can go to zero. My strategy is: only use 50% of profits to roll over, never touch the principal; preserving the principal is essential for longevity.

Finally, let’s discuss "targeted demolition": liquidations always occur at key price levels; it’s not just bad luck! Your stop-loss level, leverage, and position size are all "clear signs" in the eyes of the exchange. The main force will accurately smash or pull up the price to trigger stop-losses and complete the harvesting.

I have been deeply involved in the contract market for many years. If you don’t want to be "tricked" again or pay unnecessary "tuition fees", feel free to follow me at @Air 安叔 . In the next issue, I will teach everyone how to use "reverse orders" to avoid major traps and seize profit opportunities.