Why do you lose money every time you make a contract? ? ?

After reading this, you will understand that most people open contracts to use leverage to make profits when they don’t have much money, but at the same time, the difference in the contract also increases the risk of liquidation, and if the liquidation occurs, a handling fee of 1.5% of the nominal amount of the contract will be deducted. If you open a 10x leverage, the proportion of this part of the handling fee is 15% of the principal. If the contract fluctuates greatly,

You will also face unfair plug-ins. This is caused by the dealer. They buy a large amount of spot in the spot market, and then close their already opened long contracts in the contract, and then sell the spot, so that the dealer can get excess profits on the contract.

In addition, one is the execution rate and funding rate, which refers to the rate that the long side gives to the short side. Generally speaking, retail investors open long contracts, which means that they have to pay a large amount of fees to the short side continuously. This part is enough to crush a retail investor.

Is it impossible to make money by doing contracts? There is a contract strategy called spot contract hedging strategy, which means buying spot in the spot market and then opening short contracts in the contract market, so as not to continuously consume funding rates.