When doing contract trading for the first time, I realized how ridiculously expensive the funding fees are. Many beginners are scared off by these fees, but actually, this is a normal cost in the futures market.

Funding rates are essentially settlement fees between long and short positions. When the market trend is particularly strong in one direction, the rate can skyrocket. For example, if a coin like $RIVER is very hot and the long positions are overwhelming, shorts will pay higher fees to balance the market.

Want to reduce these costs? Consider choosing an exchange with relatively stable rates, or adjust your position strategy—don't always chase high or trending coins. Some exchanges also offer fee discount promotions, so checking those out in advance can save you a lot of money. Contract trading works like that—fees, risks, and rewards are often interconnected.