Many traders (especially beginners) share the same painful experience in contracts:
👉 Open a position → Market instantly reverses.
👉 Close with losses → Market flips back to your prediction.
The direction wasn’t wrong… but the money still disappears.
Why? Because you don’t know the unspoken rules of the exchange.
Let’s break it down so you can avoid 3 years of detours 🚀
Contracts ≠ simple coin buying.
They’re a structured gamble where:
The exchange writes the rules.
Every profit is another trader’s liquidation.
Even if you’re “right,” three hidden traps silently drain your capital:
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🔻 Trap 1: The Funding Rate
Not a fee, but a long vs. short balance signal.
Rate > 0 → Longs pay shorts.
Rate < 0 → Shorts pay longs.
⚠ If one side stays above 0.12% for 2+ days, that’s a trend adjustment warning. Don’t fight it#BinanceHODLerHEMI switch sides, and youll often find profits waiting.
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🔻 Trap 2: Liquidation Price
10x leverage doesn’t mean only a 10% margin. The exchange adds a hidden forced liquidation fee.
👉 Actual liquidation comes 11.5% earlier than the chart suggests.
That tiny gap? Enough to wipe you out.
🔻 Trap 3: High Leverage Addiction
100x leverage looks sexy but fees + funding rates scale up too
Hold for 3+ hours and it’s like a “slow bleed” on your capital
✔ Use high leverage only for ultrashort trades.
✔ Target 2–4% gains.
✔ Never hold overnight
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💡 Contracts are a battlefield of strategy, not stubbornness. Once you see these traps, you’ll stop being the “donor” and start playing the smarter game.
Follow for more hidden truths 👊
