Want to play contract trading? Understand the rules first, don't bet blindly like in a casino. Understanding the basics of contracts is not only for survival, but also for avoiding the risk of "margin trading".
Today, let’s talk about the basic concepts of contract trading that you must know to help you avoid pitfalls and protect your capital.
😎 Handling Fees, the Hidden Assassin
First of all, you need to understand the transaction fee of contract trading! Many people think that the transaction fee is a small amount, but they don’t understand the fee rate and end up getting “cheated”.
For example, the commission for opening and closing a market order is 0.05%, which doesn’t sound very good, but once leverage is added, the fees rise sharply.
For example, if you use 100x leverage and invest 100U, the commission will be 10U! You haven’t made any money yet, but you’ve already lost some of it.
Remember, leverage is not a shortcut to getting rich. It is more like a double-edged sword. If you don’t use it well, you will be back to the old days overnight.
🔥 Liquidation Fee, the “Harvester” that Can’t Be Avoided
Liquidation fees are really annoying, especially when you are about to be "knocked down" by the market, it is like the last straw that breaks the camel's back.
If you are forced to close your position by accident, you will not only lose money due to market fluctuations, but you will also have to pay a liquidation fee of up to 1.5%! You may think that a 1% drop will be enough, but after deducting the handling fee and liquidation fee, you may be forced to close your position if it drops by 0.5%.
Therefore, don’t wait until the “forced liquidation” occurs before you regret not stopping the loss.
👀Mark the price, don’t be a “leek” who chases the ups and downs
“Mark price” sounds complicated, but it is actually a price that is more stable than the current price.
When setting the trigger price, use the mark price to reduce the impact of short-term market fluctuations. If you don’t want to be “ripped off”, you must learn to deal with the mark price.
⚖️ Single-position or full-position, which one should I choose?
Many people cannot distinguish between position-by-position and full-position. In simple terms:
Full-position mode: All funds in the account are margin, the opening amount is large, and the risk is also high.
Position-by-position mode: only a portion of the funds used to open a position are used as margin, and the other funds remain unchanged, which reduces the risk.
Both have their pros and cons, and which one you choose depends on your risk tolerance.
But remember, you cannot switch modes at any time when there are open contracts, so you have to think carefully when operating.
Summarize:
Contract trading is not a tool to double your money without thinking, but more like a high-risk game. You have to understand the basic rules such as fee structure, leverage risk, liquidation conditions, and price fluctuations to survive in the game.
I would like to remind you not to follow the trend and increase leverage recklessly. The charm of contracts lies in precise strategies and risk control, not "becoming famous with one bet". Only by staying rational, setting stop losses, and using leverage well can you make steady progress in the game.
#美联储放鹰
For the next layout direction, I will lead everyone to target the huge profit opportunities of copycats, especially those projects with great potential. There is no problem in expecting the space to be more than 10 times. If you want to make a lot of money in the bull market, like + leave a message, and I will take you to layout the entire bull market together!
