Core Insights - The article emphasizes the complexities and risks associated with contract trading in the cryptocurrency market, particularly for beginners [1] Group 1: Understanding Core Mechanisms - Understanding the core mechanisms of contract trading is essential, as it involves concepts like leverage, margin, and liquidation prices, which differ from simple spot trading [2] - Leverage can amplify potential gains but also significantly increases risks, making it crucial for traders to grasp these rules before engaging in trading [2] - Beginners are advised to use simulation accounts or minimal funds to fully understand the differences between perpetual contracts and futures contracts [2] Group 2: Risk Management - Effective risk management is vital, with experienced traders never investing all their funds in a single trade [2] - Adhering to the principle of using only idle funds and setting clear stop-loss levels for each trade is key to avoiding emotional decision-making and catastrophic losses [2] - Traders should avoid frequently modifying or canceling stop-loss orders due to market fluctuations [2] Group 3: Continuous Learning and Community Engagement - Continuous learning and engagement with a community are crucial for navigating the rapidly changing market [2] - Joining a high-quality learning community allows traders to discuss market logic, share trading experiences, and stay updated on industry trends, facilitating faster growth and reducing mistakes [2] - The article invites interested individuals to join a community for systematic learning about cryptocurrency and contract trading, emphasizing that discussions are based on knowledge sharing and do not constitute investment advice [2]

Risk Management - The industry emphasizes the importance of avoiding cyclical loans, even when annualized returns on the chain are 100% [3] - The industry suggests that current market conditions are often designed to target arbitrage strategies due to the large capital and positions involved, making it difficult to replenish margin or reduce positions quickly enough [3] - The industry warns against underestimating the complexities of financial management, especially in 2025 [3] Trading Strategies - The individual previously separated trading positions from arbitrage positions for clarity [1] - The individual's previous strategy involved simultaneously buying 1,000 units and shorting 900 units for arbitrage and long positions [2] - The individual's current strategy involves buying 1,000 units and shorting 1,000 units, with a separate account holding a long position of 900 units [2] Market Observations - The individual's smaller account, primarily used for trading smaller cryptocurrencies with moderate leverage, experienced significant losses due to the near-zero value of many of these cryptocurrencies [2] - The individual failed to replenish margin during a market downturn [3] - The industry notes that USDT interest rates exceeding 12% would have resulted in even greater losses [3]

Group 1 - The core cost of buying one hand of stock index options is the premium, which is calculated using the formula: one hand premium = option price × contract multiplier [3] - The main stock index options in China include CSI 300, SSE 50, and CSI 1000, with a contract multiplier of 100 RMB per point [3] - Examples of premiums for different options are provided: CSI 300 at 40 points results in a premium of 4000 RMB, SSE 50 at 50 points results in 5000 RMB, and CSI 1000 at 89.2 points results in 8920 RMB [3] Group 2 - The trading cost of stock index options consists of exchange fees and broker commissions, with a dual charging mechanism for opening and closing positions [5] - The China Financial Futures Exchange (CFFEX) has a unified fee rate for major products: 15 RMB per hand for single transactions and 2 RMB per hand for exercise fees for CSI 300 options [6] - For a typical transaction involving one hand of CSI 300 options, the total cost would be 30 RMB for opening and closing positions, plus an additional 2 RMB if exercised [6] Group 3 - Broker commissions typically range from 1 to 5 RMB per hand for ordinary investors, added on top of the exchange fees [7] - Sellers of options are required to pay a margin, which is calculated based on the option contract's value and the exchange's margin ratio [8][9] - Additional costs may include exercise fees, which can vary by option type and exchange regulations [11] Group 4 - Investors must meet certain conditions to open an options account, including maintaining an average asset of over 500,000 RMB for the first 20 trading days and having at least six months of trading experience [14][16] - Options provide the holder the right to buy or sell an underlying asset at an agreed price within a specified time, with the buyer's maximum loss limited to the premium paid [15]

Risk Management - Stop-loss is crucial to avoid significant losses [1] - Cutting losses (割肉) is a better strategy than adding margin when facing losses [1] Investment Strategy - The report suggests that consistent application of stop-loss orders can prevent complete depletion of investment capital [1]