What frustrates people the most about contract trading? Clearly predicting the market direction, only to have the account wiped out. A fan once shared an experience: holding a position for several days, the trend perfectly aligned with expectations, but in the end, over a thousand dollars were deducted due to funding fees, and finally, the position was liquidated. Ironically, right after closing the position, the market immediately surged in the opposite direction. Incidents like this happen too frequently, and the real issue isn't your market judgment but a lack of thorough understanding of the underlying rules of contract trading.

There are three hidden pitfalls in the contract market that can easily trip you up:

**First Pitfall: The Invisible Drain of Funding Fees**

Many believe that holding a position doesn't cost anything, but that's not true. The platform settles funding fees every 8 hours. When the rate is positive, longs pay; when negative, shorts pay. The reality is, investors holding full positions often see their margin still far from liquidation, but their accounts are gradually drained as funding fees are continuously deducted. How to handle this? During high-fee periods, avoid holding positions for too long. Set your orders so they don't cross multiple settlement periods, and when the direction is confirmed, try to be on the side that benefits from the fee rate.

**Second Pitfall: The Hidden Mechanism of Liquidation Lines**

The theoretical liquidation line you calculate in your head often differs significantly from the platform's actual forced liquidation level. This is because the platform's liquidation price includes the accumulated transaction costs. As a result, the price might only drop slightly, and your position gets forcibly closed. Defensive strategies: never operate with full leverage; choose isolated margin mode to manage risk; keep leverage between 3x and 5x; and leave enough buffer space.

**Third Pitfall: The Profit Trap of High Leverage**

The higher the leverage, the more terrifying the associated fees and funding costs become. Many traders get the market direction right but end up with no profit at all. The core reason is that the high costs associated with high leverage continuously erode potential profits. Reasonable and moderate leverage is key to long-term survival.

Ultimately, contract trading isn't just about predicting market ups and downs; it's also about mastering the rules of the game. Understand these hidden rules, avoid common pitfalls, and only then can you truly survive in the market. Only by staying alive do you have the right to talk about profits and doubling your investments.