Brothers, pay attention to contract trading! Do you often find yourself going against the market right after opening a position, or do you see the price skyrocket just after you close your position? You clearly have the direction right, yet you end up losing everything?

In today's article, Brother Hua will thoroughly expose the underlying tricks of contracts, revealing the hidden rules that exchanges don't want you to know. After reading this, you can avoid three years of detours and save hundreds of thousands in tuition.

Do you think contracts are truly about buying and selling Bitcoin? Don't be too naive. Contracts are essentially a 'betting agreement'; the exchange acts as the house, and every penny you earn comes from another gambler's liquidation.

Going long = betting on a rise, going short = betting on a fall.

But why do you still get harvested even when you predict the direction correctly?

Three major secrets that I will unveil today:

1. Funding rates are not just 'transaction fees'; they are the exchange's guiding stick!

When the rate > 0, the longs pay the shorts; when the rate < 0, the shorts subsidize the longs. Once the rate on one side remains persistently high (for example, above 0.1%), it’s a clear signal: 'We are preparing to harvest this side!'

In practice, if the rate exceeds 0.1% three times in a row, don’t fight it; reversing your position often results in gains.

2. The liquidation price is not what you think it is!

Do you think a 10x leverage means a 10% drop causes liquidation? You’re too young. When the exchange calculates the liquidation price, it also adds 'forced liquidation fees', often causing you to exit early, leaving your margin completely wiped out.

3. High leverage ≠ high profits, but rather high fees + high wear!

If you go for 100x leverage, fees and funding costs are calculated based on the enlarged position! Holding for over 4 hours? High-frequency deductions can drain your capital.

I only recommend high leverage for short-term spikes; take your profits and do not linger in battle.

Now let’s talk about rolling positions—this is the nuclear weapon of full position mode, increasing the position when profitable, and can multiply your gains by a hundred times if the market is good.

But once it reverses, the entire position goes to zero!

My strategy is: only use 50% of profits for rolling positions, always leave some room to breathe; survival is key.

Finally, let’s discuss 'targeted explosions'.

Why does liquidation always occur at those critical price levels? Do you really think it's just bad luck?

That’s because, in the eyes of the exchange, your stop-loss and leverage are clear signals.

I am Brother Hua, focusing on mid-short term contracts + mid-long term spot layouts.

Follow me, and in the next issue, I will teach you how to use 'reverse orders' to exploit the traps set by the main players.