Understanding the trading rules thoroughly is the only way to protect your account.

Some time ago, a trader's story made me think for a long time: they were completely correct about the direction, holding onto their position for four days. Just as the market was about to take off, their funds were forcibly deducted by 1000U, and they were eventually forced to close their position. What a painful realization—watching the market that belonged to them slip away before dawn.

This kind of story is replayed every day in the perpetual contract market. Many people think the problem lies in misjudging the market direction, but the real danger is hidden in those invisible rules. Today, based on my years of trading experience, I will analyze the pitfalls that beginners are most likely to fall into.

**Funding Fees: The Silent Black Hole of Trading Costs**

Many people stare intently at the candlestick charts but ignore the funding fee. For perpetual contracts without an expiration date, the funding fee is the mechanism used to keep the contract price tied to the spot price.

In simple terms, the funding fee is a transfer between longs and shorts. When the market sentiment is very bullish, the contract price tends to rise above the spot price, and at this time, longs pay shorts; the opposite is also true. In other words, during a bullish market, going long is actually bleeding continuously.

I have seen too many cases: people correctly judged the market direction, held their positions through volatility, but because they paid the funding fee week after week, their margin was eroded to nothing, and they were finally liquidated.

**How to avoid this trap?** Before pressing the buy button, always check what the current funding rate is. Especially when the rate is soaring, do not rush to go long. If you plan to hold your position for a long-term trend, choose trading pairs with more moderate funding rates or avoid the settlement points every 8 hours.

**Liquidation Line: More Fragile Than You Think**

A common misconception among beginners is that a 10x leverage can withstand a 10% drop before liquidation. Haha, that’s not how it works in reality. The liquidation mechanism set by the platform is not as "generous" as you might think.