A fan recently went long on a certain coin, got the direction right, and held the position for four days, but the funding fee was directly deducted, nearly $1,000 USD. Just as a rebound was imminent, a single needle and thread burst the position. Just after stopping out and cutting losses, the market turned around and took off.

This is not a matter of luck—it's a lack of understanding of the exchange rules.

Many people watch the K-line daily but ignore the most frustrating aspects of contracts. Today, we'll break down the three most common pitfalls. Understanding these can save you a lot of unnecessary expenses.

**First Pitfall: Chronic Loss of Funds Due to Funding Fees**

Funding fees are deducted every 8 hours, with rates fluctuating between positive and negative. When going long and encountering a positive rate? That's like paying an overnight fee to the short side every few hours. Many people get the direction right and hold for several days, only to see their profits eroded by funding fees.

How to deal with it? Either trade short-term to avoid repeated funding fees or wait until the trend is clear before entering, prioritizing directions that are favorable in terms of funding rates.

**Second Pitfall: Your Liquidation Price Calculation Is Not What the Exchange Uses**

Leverage 10x, thinking a 10% drop will trigger liquidation? In reality, considering fees and slippage, you might be liquidated after a 7% drop. The platform's risk control system is always more aggressive and proactive than your calculations.

The solution is: use isolated margin mode, keep leverage below 5x, and ensure sufficient margin—leave yourself room to react so the market can turn around.

**Third Pitfall: High Leverage Is a Double-Edged Sword, but the Handle Is in the Platform's Hands**

100x leverage sounds tempting, but all fees and funding costs are amplified by leverage. Seeing unrealized profits of a few hundred dollars might look good, but after detailed calculations upon closing, you could end up losing money. The higher the leverage, the faster you need to enter and exit; if you want to hold a long-term trend, lowering leverage is more realistic. Don't expect high leverage to generate long-term gains—that's just giving free work to the platform.

In contract trading, it's not about who has the bigger guts, but who understands the rules better and executes more effectively. The market itself is quite fair; what really causes losses are often the overlooked details.