Get to know Perptual Futures! The secret to getting rich overnight.

In the crypto world, a day is like ten years in the human realm. This saying has led countless people to rush into the futures market with the fantasy of "overnight success," only to ultimately become the "human fuel" for exchanges. Today, I will strip away the glamorous exterior of futures trading in the most straightforward way, so you understand: you are focused on the opportunity, while the exchanges are focused on your principal.
🎲What is Perptual Futures? The "eternal version" of futures.
Perptual Futures, in essence, is a wager agreement without an expiration date. It means you are "betting" with the market on whether the future price will rise or fall. It's like a "futures" brother, but more exciting, as there is no "expiration date" and you can keep betting indefinitely.
👉 For example:
You predict the price of watermelon: you can "buy up" or "buy down."
If you buy long, you think the watermelon will rise from 1 yuan to 2 yuan. You first "agree" to buy at 1 yuan and wait until it rises to 2 yuan to sell, earning a profit of 1 yuan.
If you want to short, you think the watermelon will drop from 1 yuan to 0.5 yuan. You first borrow a watermelon, immediately sell it for 1 yuan, and then buy it back when it drops to 0.5 yuan to return it. In this buy and sell, you make a profit of 0.5 yuan.
No matter if the market rises or falls, you have the opportunity to make money as long as you guess the right direction.
Spot trading is something everyone knows. For example, if a watermelon costs 10 yuan, you have to pay 10 yuan to buy one.
You can use "leverage" with contracts. If you use 10x leverage, you only need to put in 1 yuan (this is called margin), and you can leverage a watermelon worth 10 yuan!
😈 When you earn: The watermelon rises to 11 yuan (up 10%), you use 1 yuan of principal, earn 1 yuan, and the yield rate is 100%!
💀 When losing: The watermelon drops to 9 yuan (a 10% drop), your 1 yuan principal is completely wiped out (liquidated).
Leverage can help you earn quickly, but it can also lead to faster losses. It amplifies your profits, but it amplifies your risks even more.
There is often a phenomenon called "pinning," where the price suddenly drops and then comes back, or suddenly spikes and then comes back. Your principal will only be like this; as long as the price touches your liquidation price even for just a moment, it will instantly trigger a margin call.
🧠 3 Life-Saving Concepts You Must Understand
Contracts are divided into two modes, one is called Full Position and the other is called Isolated Position.
🛡️Full margin means imagining your margin (capital) as all the money in your wallet, so your margin is relatively large and not easy to liquidate. Because you have substantial capital (the entire wallet's money is supporting it), you can withstand greater price fluctuations. For example, if one position incurs a floating loss, the profits from other orders or the unused money in your wallet can be used to cover it, allowing you to hold on longer. But! If it blows up, it all blows up! If the market moves completely against you, leading to a final liquidation, then all the money in your entire contract account (the whole wallet) will be lost at once.
🎯 Isolated Margin means that you take a fixed amount of money (for example, 100 yuan) from your total wallet as the principal for a single bet. Whether you win or lose this round, it only counts within that 100 yuan. Even if you perform poorly and face liquidation, you will only lose that 100 yuan you put in. The rest of the money in your wallet remains safe. The downside is that the principal is small, making it easy to be liquidated. Since you only took out 100 yuan to play, if the price fluctuates slightly in the opposite direction, this 100 yuan may not be able to withstand it and can easily be forcibly liquidated. It is suitable for beginners to test the waters or for placing multiple different directional bets at the same time.
Another concept is the funding rate. The funding rate is one of the most confusing concepts in Perptual Futures, but its core logic is actually quite simple.
Imagine you are in a casino, at a betting table for "guessing the rise and fall": those betting on "rise" (bulls) sit on one side, and those betting on "fall" (bears) sit on the other side. Normally, there should be about the same number of people on both sides, making the game quite balanced.
But suddenly, there was a piece of good news, and the vast majority of people rushed to bet on "rising". At this moment, the casino owner discovered a problem:
If the price really keeps rising, those betting on "up" will earn a fortune, while those betting on "down" will lose everything and exit. Over time, no one will bet on "down" at the table, and this game will collapse.
What to do?
The casino owner came up with a solution: he charged a small "balancing fee" to the majority side (those betting on "up"), and then distributed it to the minority side (those betting on "down").
Why do this?
1. Encourage the weak: Give a subsidy to those who bet on "down" so they don't leave and continue playing.
2. Reminder to the strong: Tell those who bet on "up": "You are too enthusiastic, calm down a bit, holding this direction comes with a cost."
This "balance fee" refers to the 【funding rate】 in the contract.
How does the funding rate work in contracts?
If there are far more bullish (long) participants in the market than bearish (short) participants, then the longs will have to pay the shorts. Conversely, if there are far more bearish (short) participants than bullish (long) participants, then the shorts will have to pay the longs. Typically, settlements occur every 8 hours (e.g., at 0:00, 8:00, and 16:00 UTC).
How is the fee determined?
It is automatically calculated by a formula, mainly looking at the difference between the contract price and the spot price, as well as the ratio of long and short positions in the market. You don't need to calculate it yourself; the exchange will display it.
If the funding rate is consistently positive and very high, it indicates that the market is extremely bullish and everyone is going long. You need to be cautious as a correction may be imminent. If the funding rate is negative, it indicates that the market is very bearish and everyone is going short, which could be a signal for a rebound.
So, next time you see the funding rate, you can understand it as the "market equilibrium tax" or "overheated sentiment cooling fee"!
🚨How to profit from it? If you still want to try, remember these 6 iron rules: surviving is more important than earning.
First, do not hold onto a position.
Holding onto a position is the first way everyone dies in the market. You think the market will come back; yes, it has come back a few times, but that one time it doesn't will be enough to reset your life. I've seen too many so-called veterans who have been in the game for 10 years, and in the last wave of the market, they ended up with nothing. It's not that they don't know how to trade; it's that they can't bear to admit defeat. As a result, they are never qualified to talk about trading again.
Remember, the market is not afraid of your stop-loss, it is afraid of your stubbornness. A stop-loss is not cowardice; it is a way for you to save your own life.
Second, high-frequency operations
Some people feel itchy all over if they don't place an order in a day; even if the market hasn't moved, their hands start moving first. You think you are trading, but in reality, you are looking for trouble. A true professional trader may only make a few moves in a day for short-term trades, or just two or three moves in a week for long-term trades, but each move is calculated down to the bone. The higher the frequency, the denser the mistakes, and in the end, it all relies on emotional trading. To put it bluntly, it's not about losing money; it's about self-consumption. The market loves people like you who can't resist the urge to trade.
Third, addicted to watching the market.
Watching the market every day is not diligence, it's anxiety. You think you are in control of the market, but in fact, you are being led by the market. Those who truly understand the rhythm set their stop-loss and turn off the screen. The market does not reveal itself by your constant watching, and profits are not generated by your imagination. The longer you stare, the more chaotic your emotions become, and the shakier your hands get. In the end, your trades rely on impulse, not logic.
Fourth, always manage risks with a backup warehouse.
Recommended main position: The spare position is allocated at a ratio of 7:3 or 8:2, and additional positions should only be added when there is a trend reversal or rebound signal, with each addition not exceeding 1/3 of the spare position. After making a profit, first fill up the spare position, and never use it to increase leverage. With this safety net, you can avoid a total loss in one go and maintain a stable mindset, allowing you to survive longer in the market.
Fifth, refuse high leverage.
High leverage is the number one culprit of contract liquidation! Don't touch leverage above 10x. With 5x leverage, a 20% drop leads to liquidation, while with 10x, it only takes a 10% drop. Staying alive gives you a chance.
Sixth, technical analysis is the only reliance.
Fundamentals: Pay attention to the interest rate cut cycle and policy trends (such as the market after Trump's election).
Technical model: K-line patterns (head and shoulders bottom, box structure), indicators (MACD, moving average system).
Position Management: Each trade's stop loss should not exceed 5% of the principal, and the profit and loss ratio should be at least 1:1.5.
Recently, the black swan event on October 11 resulted in a catastrophic liquidation of $20 billion, with 1.6 million people suffering losses.
BTC price dropped from 122,000 USD to a low of 102,000 USD, with a maximum decline of over 16%; ETH price fell from 4,340 USD to a low of 3,400 USD, with a maximum decline of over 22%; mainstream coins like Solana (SOL) and XRP saw declines approaching 30%. It's normal for altcoins to have declines exceeding 90%. Among those who opened leverage and contract trading, 98% were liquidated. Many people who were showcasing profit screenshots the day before suddenly vanished the next day, not even updating their social media.
The crypto space is not lacking in opportunities; what it lacks is people who can endure.
Before you press the "Open Position" button, ask yourself:
Are you in control of the contract, or is the contract in control of your greed?
Exchanges don't need to defeat you; they just need to wait for you to self-destruct.