Many people enter the market hoping to double their investment quickly with contracts, but small funds are actually the most likely to be forced out. The main reasons boil down to these two.

First is the brutality of leverage. As long as the market experiences even slight extreme fluctuations, small account funds have no chance to wait for a price correction. Before they can even average down their costs, they are directly liquidated. This is why small funds fear not being wrong about the direction, but rather missing the rebound moment.

Second is the invisible drain of funding rates. During market oscillations, your strategy is running, your position is held, but money is flowing out one by one. This wear and tear is most deadly in sideways markets, and small funds cannot withstand the continuous harvesting of fees. So rather than saying small funds are unsuitable for contracts, it’s more about choosing the right entry timing and position size.