Currently, the contract trading market remains hot, but do you really understand what you're betting on?

Behind the seemingly booming market, there are actually three huge temptations, which are also three deep pitfalls.

**The first temptation: The magic of leverage**

A 50% increase in spot prices is already considered a big profit, but if you use 10x leverage in contracts, the same increase can turn into a 5x return. Often, people are not satisfied and will increase leverage to 20x, 50x, or even 100x. In this way, even tiny fluctuations can be amplified into the illusion of "getting rich overnight." This expectation of rapid doubling is what pulls countless people into this vortex.

**The second temptation: The market's two-way mechanism**

Spot traders find it hardest when the market declines—they can only watch their assets shrink helplessly. Especially during sudden crashes of certain coins, like CATI, ACT, which drop straight down, spot holders are basically trapped. But contracts are different—when the market drops sharply, opening a short position can be very profitable. Others' panic becomes your profit opportunity. The flexibility to go long during rises and short during falls naturally becomes the most attractive feature of the contract market.

**The third temptation: The addictive feeling brought by fast pace**

The pace of contracts is fast—making money is quick, losing money is quick too. When you win several trades in a row, your mindset starts to swell, and your hands become increasingly heavy; when you start losing, you often want to make a big comeback to turn things around. Over time, this cycle causes people to gradually fall into "gambler mode." Some can stop losses in time, but others sink deeper and deeper, eventually unable to escape.

**How to survive longer in this game?**

First, the rhythm of opening and closing positions must be steady. It’s not about being conservative, but about having a sense of rhythm and not being scared by short-term fluctuations. Second, risk management is not just talk—each trade must have clear take-profit and stop-loss settings, which is the true risk defense line. Third, always pay attention to market trends and the movements of large funds; following the trend is always wiser than fighting against it. Lastly, and most importantly—every trade must have a complete plan, including entry reasons, target prices, and exit conditions.

The contract market is like this: a single thought can decide the whole situation. If you judge the direction correctly, that’s an opportunity; if you judge wrong, a deep pit is waiting at any time. So instead of exploring alone, it’s better to learn from experienced people and let professional perspectives guide your trading direction. This way, your chances of making it out will be greater.