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Brothers, be more alert when trading contracts! Do you always feel like the market is just watching your few U? You get the direction right, but always get whipsawed out of positions right before it starts, just when you cut loss it big pumps, you can hold the order but can't escape getting liquidated?
Today we won't talk about fluff; I'll tear off the veil of contracts and discuss the unspoken rules that exchanges never mention. It may not make you rich immediately, but it will definitely help you avoid many pitfalls.
Do you think futures trading is really trading Bitcoin? Don't be ridiculous. At the end of the day, it's just a "price wager" where you're the player, the platform is the house, and what you earn is the money that others get liquidated.
When you go long, you are betting that it will rise next; when you go short, you are betting that it will fall next.
Let's get straight to the point, three major truths that many people dare not say:
The funding rate is not a "cost", but a barometer!
The positive fee rate means that longs pay the shorts; the negative fee rate means that shorts subsidize the longs. If one side's fee rate remains high, it is a warning from the market: "This position is too crowded and is about to get liquidated!"
At this time, don't follow the crowd; going against the trend is often safer.
The liquidation price has a hidden mechanism!
Don't be naive to think that a 10x leverage will only get liquidated after a 10% drop. The platform will charge an "extra friction fee" during forced liquidation, which is like sending you on your way in advance, ensuring that your margin is left with nothing.
High leverage is a double-edged sword - you earn quickly, but you also lose quickly!
If you open at 100x, the fees and funding costs are calculated based on the amplified value. Holding overnight? High-frequency deductions can silently eat away at your principal.
High leverage is only suitable for a flash battle; if you make a profit, you must run, and never engage in a protracted battle.
Let's talk about rolling positions - this is the "Holy Grail" for full-position players, and also their "poison".
Increase positions when in profit, it may multiply several times in a big market.
But once the market reverses, the all-in mode will directly get liquidated, and you won't be able to preserve even your principal.
My approach is: only use half of the floating profit to reinvest, always keep the base position, and survival is necessary for output.
Finally, why does it always feel like the market is "targeting" you? Those key levels frequently get liquidated, is it really just a coincidence?
No. Because the exchange can see the leverage and stop-loss lines of most people, collective Get Liquidated is their most profitable moment.