The current market environment is now dominated by derivatives trading. If you don't engage in derivatives, you basically won't see any profit effects. So let me give everyone a quick overview of the differences between spot leverage and perpetual contracts.

When studying volatile markets, you'll find that derivatives are an unavoidable tool, so let's systematically review them.
Spot leverage vs. Perpetual contracts: Spot leverage involves borrowing money or coins, with fixed and continuous interest, usually not exceeding 10x. Perpetual contracts do not involve real borrowing; they rely on funding rates to maintain price anchoring, with leverage up to 100x, but liquidation occurs faster.
Funding rate: It is the fee exchange between longs and shorts, used to keep the contract price close to the spot price. When the contract trades at a premium, longs pay shorts; when at a discount, shorts pay longs. It is fixed within a settlement cycle and has a lag, not reflecting real-time market sentiment.
Settlement mechanism: Typically settled every 8 hours, but in extreme market conditions, it can be shortened to 1 hour. Only those holding positions at settlement will pay or receive the funding rate.
Fee absorption: A common strategy is to go long on spot and short on contracts to hedge, profiting from funding rates. This is also the underlying logic of high-yield products like USDe.
Open interest: Reflects the total number of open long and short contracts in the market. When OI and price rise together, it indicates long positions are entering; when OI and price fall, it often means longs are closing and fleeing.
Margin and liquidation: Larger positions require higher margin. Maintenance margin may seem safe, but once forced liquidation occurs, slippage often consumes all margin. The liquidation mechanism aims to protect the platform, not you.
In summary: The core logic of perpetual contracts is “funding rate anchors price, margin controls risk,” but the key to real trading is one thing—don't hold on to losing positions stubbornly. #加密市场反弹