A one-month contract lost eight thousand, and the handling fee alone went to 4000, what a rip-off ๐ฆ. Is it that every time itโs just about buying without any profitable orders @BN่ฟ40ๆฐ่้ฝๅฏ-็็ฎไป
Three major pain points of contract trading
Playing contracts, these "invisible costs" are scarier than losses!
High leverage as a "double-edged sword": leverage magnifies profits but also magnifies losses. Under 100x leverage, a 1% price fluctuation could lead to liquidation, and a spike in the market can zero out instantly.
Liquidation fee: triggering a margin call not only wipes out your margin but also requires an additional liquidation fee. This fee is deducted first and is the โfinal blowโ after liquidation.
Funding rate loss: perpetual contracts settle the funding fee every 8 hours. In a one-sided market, continuously paying the fee can erode profits like a frog in boiling water; the longer you hold, the higher the cost.
Contracts are not gambling; recognizing these cost traps is essential to avoid becoming a "cash machine" for the exchange.
#ContractTrading #RiskWarning #TradingCosts
Three major pain points of contract trading
Playing contracts, these "invisible costs" are scarier than losses!
High leverage as a "double-edged sword": leverage magnifies profits but also magnifies losses. Under 100x leverage, a 1% price fluctuation could lead to liquidation, and a spike in the market can zero out instantly.
Liquidation fee: triggering a margin call not only wipes out your margin but also requires an additional liquidation fee. This fee is deducted first and is the โfinal blowโ after liquidation.
Funding rate loss: perpetual contracts settle the funding fee every 8 hours. In a one-sided market, continuously paying the fee can erode profits like a frog in boiling water; the longer you hold, the higher the cost.
Contracts are not gambling; recognizing these cost traps is essential to avoid becoming a "cash machine" for the exchange.
#ContractTrading #RiskWarning #TradingCosts