Why is it a fifty-fifty proposition to trade in contracts? After watching this, you will understand. The average person opens a contract when they have limited funds to use leverage to gain profits. However, the difference in the contract also increases the risk of liquidation. Moreover, if liquidated, a 1.5% fee will be deducted from the nominal amount of the contract. If using 10x leverage, this fee represents 15% of the principal. If the contract fluctuates greatly,

There will also face unfair Long Wick Candle caused by the dealer, who buys a large amount of Spot in the Spot market, then closes out the contract where they have already opened a long position, and then sells the Spot, so the dealer can make excess profits on the contract.
In addition, one is the execution rate funding rate, which refers to the rate that longer gives to the short side. Generally speaking, retail investors open long contracts, which means they have to continuously provide a large amount of fees to the short side. This part alone is enough to crush a retail investor.
Can't you make money by trading contracts? There is a contract strategy called Spot contract hedging strategy, which means buying Spot in the Spot market, and then opening a short contract in the contract market, so that you can continuously earn funding rate.#BTC #GateioInto11 #ContentStar #ETH