Five Things You Must Know When Trading Contracts: 1. Contracts Allow High Leverage (such as 10x, 20x, or even higher), which means small price fluctuations can lead to high profits, but can also result in rapid liquidation. It is recommended that beginners start with low leverage (such as 1x~3x).

2. Understand the Types of Contracts: Perpetual Contracts vs. Expiry Contracts

Perpetual Contracts: No expiration date, mainstream choice, need to pay attention to the funding rate mechanism.

Expiry Contracts: Have an expiration date, suitable for long-term trend judgments.

3. Understand the Liquidation Mechanism

Contracts adopt two margin models: "Isolated" or "Cross":

Isolated: Only the margin for that position is lost, with good risk control.

Cross: Loss will use all the margin in the account, with a high risk of liquidation.

Additionally, the liquidation price is automatically calculated by the system based on leverage and position, so it needs to be monitored at all times.

4. Funding Rates Affect Your Holding Costs

For perpetual contracts, the funding rate is settled every 8 hours. Different positive and negative funding rates can lead to costs you need to pay or receive. Long-term holdings must consider this hidden cost.

5. Risk Control is Always a Priority: Set Take-Profit and Stop-Loss

Do not blindly chase price increases or decreases; setting take-profit and stop-loss, and controlling position size are basic operations. It is recommended to follow:

Do not over-leverage, set a proper stop-loss

Do not go ALL IN, and do not bet everything

Enter and exit the market with a plan, rather than emotional trading.