Dear friends in the cryptocurrency circle, today we are going to talk about the perpetual contract that people love and hate. It sounds high-end, but in fact, it is a bit like futures, but it does not have a fixed "expiration date". You can play it whenever you want, and you can buy both rising and falling prices. Isn't it exciting?
Why do so many people like it? To put it bluntly, it is because spot trading is too slow to make money! Think about it, you have to wait for one or two years to buy spot trading. When the bull market comes, your coins will increase several times, but when you count the money, it is still tens of thousands of yuan. Isn’t it frustrating? Not to mention that if the bull market does not come, or your coins do not increase much, wouldn’t you lose a lot? Therefore, many people are eyeing contracts, thinking that this is a good way to quickly accumulate original funds.
However, contracts are no joke. There are several key points that you need to understand:
First, leverage! This is a double-edged sword. It can make you a lot of money, but it can also make you bankrupt overnight. Think about it, with a 100x leverage, you can double your money with a slight price fluctuation, but at the same time, if you lose, it will be a blink of an eye. Many people start with a low leverage, and when they lose, they increase the leverage to a high one. As a result, you know, it is only a matter of time before their positions are blown up.
Second, the funding rate. Perpetual contracts follow the spot price. In order to prevent the difference between the two, the exchange has set a funding rate to adjust. If you are long, you may have to pay the short seller; if you are short, it will be the other way around. This rate is calculated every 8 hours, so you have to know it.
The third one is the handling fee. This is like a toll, you have to pay it when you buy or sell. The specific amount depends on your transaction volume and leverage, as well as whether you are a taker or a maker.
Finally, and most importantly, liquidation! If the price drops to the forced liquidation line you set, then sorry, the platform will help you "stop loss" and close your position. However, the handling fee at this time is very high, so you have to set a stop loss price yourself and leave some room to avoid being forced to close by "pins".
In summary, if you have poor self-control, are competitive, like to gamble, get carried away easily, or have great financial pressure, then don't touch the contract. Otherwise, the market will teach you a lesson!
Recently, I plan to ambush a potential coin that is ready to explode. It is very easy to double it. At the same time, I am also preparing to find some potential coins to hold by the end of the year. It is expected that there will be no problem with more than 10 times the space. The quota is limited! If you want to follow, like + leave a message.
