Did you get the direction right—and still get liquidated?
Someone told me: “Bro, you nailed the direction. I held the position for four days, and they charged me 1,000U in funding fees. In the end, I got liquidated.
The moment I closed it, it took off.”
I only replied with one line:
You’re not wrong about the market—you’re wrong about the rules.
A lot of people trade futures, only watching up or down, and ignoring the platform’s terms.
Today, I’ll lay out three traps.
First trap: funding fees—slowly squeeze you dry. You think the price didn’t move, so you didn’t lose? Wrong.
Funding fees come three times a day: 8:00, 16:00, and 24:00.
If you’re on the wrong side, you’ll keep paying. When the funding rate is positive, longs pay shorts.
When the funding rate is negative, shorts pay longs.
Someone went all-in long and held for two days—paying several hundred U per day—and got liquidated.
The next day the price flew, but the person was already gone.
Remember:
If the funding rate stays above 0.1% for two consecutive rounds, don’t stubbornly hold.
Try not to hold positions overnight.
If you can be on the side that receives funding fees, don’t be on the side that pays.
Second trap: liquidation price isn’t the line you calculated.
Many people think with 10x leverage, you’d only get liquidated if it drops 10%.
In reality, you’re wiped out after a 5% drop.
The platform also charges a liquidation fee, and the liquidation line is closer than you think. Don’t go all-in.
If you can, use isolated margin instead of cross.
Keep leverage around 3 to 5x.
More margin buffer means liquidation will be farther away from you.
Third trap: high leverage is a killing knife.
100x looks exciting, but trading fees and funding fees are calculated based on the money you borrowed.
Even if you’re right on direction and make a few dozen U, after settlement you might still be down.
One sentence is enough:
High leverage for quick trades, low leverage for long holds.
It’s not that you can’t trade—it’s that you didn’t understand the rules.
The exchange doesn’t mind you losing—it fears you reading the fine print.
If you want to make money and stay alive, don’t bet on direction first. Understand the rules before you trade.
Follow me. I can’t guarantee I’ll “take you to the sky,” but I can help you avoid many pitfalls.
Someone told me: “Bro, you nailed the direction. I held the position for four days, and they charged me 1,000U in funding fees. In the end, I got liquidated.
The moment I closed it, it took off.”
I only replied with one line:
You’re not wrong about the market—you’re wrong about the rules.
A lot of people trade futures, only watching up or down, and ignoring the platform’s terms.
Today, I’ll lay out three traps.
First trap: funding fees—slowly squeeze you dry. You think the price didn’t move, so you didn’t lose? Wrong.
Funding fees come three times a day: 8:00, 16:00, and 24:00.
If you’re on the wrong side, you’ll keep paying. When the funding rate is positive, longs pay shorts.
When the funding rate is negative, shorts pay longs.
Someone went all-in long and held for two days—paying several hundred U per day—and got liquidated.
The next day the price flew, but the person was already gone.
Remember:
If the funding rate stays above 0.1% for two consecutive rounds, don’t stubbornly hold.
Try not to hold positions overnight.
If you can be on the side that receives funding fees, don’t be on the side that pays.
Second trap: liquidation price isn’t the line you calculated.
Many people think with 10x leverage, you’d only get liquidated if it drops 10%.
In reality, you’re wiped out after a 5% drop.
The platform also charges a liquidation fee, and the liquidation line is closer than you think. Don’t go all-in.
If you can, use isolated margin instead of cross.
Keep leverage around 3 to 5x.
More margin buffer means liquidation will be farther away from you.
Third trap: high leverage is a killing knife.
100x looks exciting, but trading fees and funding fees are calculated based on the money you borrowed.
Even if you’re right on direction and make a few dozen U, after settlement you might still be down.
One sentence is enough:
High leverage for quick trades, low leverage for long holds.
It’s not that you can’t trade—it’s that you didn’t understand the rules.
The exchange doesn’t mind you losing—it fears you reading the fine print.
If you want to make money and stay alive, don’t bet on direction first. Understand the rules before you trade.
Follow me. I can’t guarantee I’ll “take you to the sky,” but I can help you avoid many pitfalls.