Contract Trading Is Not a Game of Luck: Hidden Traps Quietly Draining Your Capital

Traders in the futures market often think that: as long as they guess the right direction, they will make money. But in reality, it’s much harsher. Many people are correct about the trend – yet still burn their accounts, not because of bad luck, but because they don’t understand the rules of the game. 👉 Below is a new article, analyzing in detail the “invisible traps” in futures trading – things that have caused countless traders to lose money unfairly.

1. Funding Fee – The Silent Money Sucker That Many Underestimate Many traders see the funding fee as a small expense, not worth worrying about. But for those holding positions for many days, funding is the “silent killer.” For example: You open a Long position, following the trend, but the market is heavily long → high positive funding. Every 8 hours, your account is deducted money, even when the price hasn’t decreased. Just a funding rate around 0.08% – 0.1%: 1 day = 3 deductions2–3 days = heavy erosion feesMany cases see the margin exhausted before even going wrong 👉 How to avoid: High funding → limit long positions for extended periodsAvoid holding positions through funding calculation times unless necessaryObserve funding trends: prolonged high funding often signals an overheated market, prone to reversal
2. Liquidation Price Not as “Far” as You Think Many people calculate simply: “10x leverage means a 10% price move to get liquidated” In fact: completely wrong. Exchanges always: Deduct fees beforehandLeave a buffer zone for volatility Liquidate early to avoid risks for themselves The result is: 10x leverage can be wiped out with just 4–6% moveDuring high volatility, liquidations happen very quickly, leaving no time to react 👉 Survival tip: Always use isolated (margin), absolutely limit cross (margin)Entire account New traders: maximum 3–5x leverageProactively add margin early if you still hold the same view, don’t wait for the exchange to “step in”
3. High Leverage Is Not a Weapon, But a Poison 100x leverage sounds very attractive: A 1% price increase means big profitA 0.5–1% decrease means suffocation Not to mention: Trading fees and funding are calculated on the magnified position sizeProfit on the chart ≠ money in your walletSome cases are right on the trend but total fees are higher than the profit 👉 Safety principle: Short-term trading: 5–10x is enoughLong-term trading: no more than 2–3xThe higher the leverage → the stricter the stop-loss
4. The Most Dangerous Psychological Trap: Holding Positions The classic phrase of losing traders: “Waiting a little longer to break even” The market doesn’t know who you are, and it’s not obliged to save you. Holding positions often leads to: Small losses → big lossesBig losses → account liquidation Many people, if they cut early: Still have capitalStill have opportunities But because they hold on → lose everything. 👉 Mental discipline: Every position must have a stop-lossView stop-loss as a safety brake, not a failureKeep a trading journal: why hold? Out of greed or hope?
5. Conclusion: Futures Are a Game of Rules, Not Guesswork Exchanges aren’t afraid of you winning a few trades. They only fear that you understand the mechanism and manage risks well. Those who survive long-term in the market share one common point: Funding is seen as a signal, not an additional costLeverage is a tool, not for gamblingStop-loss is a survival insurance, not a burden 👉 Remember: A good market can help you make moneyBut only understanding the rules of the game will help you survive long-term If this article helps you stay more alert, share it with your friend who’s daily on the brink of burning their account. Learning and discipline are always the greatest assets in the crypto market.