In contract trading within the crypto space, even using a small position (light position) strategy may still result in losses, primarily due to the following reasons:

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### 1. **High Volatility and Extreme Market Conditions**
- The cryptocurrency market is highly volatile, with extreme conditions (such as spikes, flash crashes, and significant price increases and decreases) occurring frequently. Even with a small position, if stop-loss orders are not set or if the market suddenly moves against the position, it may result in liquidation or substantial losses.
- **For example**: Bitcoin can fluctuate by 10% in just a few minutes, and with high leverage (such as 20x), even a small position can be liquidated.

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### 2. **Leverage ratio too high**
- A small position with high leverage (such as 50x, 100x) will amplify the risk. A slight price reversal can trigger a forced liquidation, especially when market liquidity is insufficient.
- **Case**: A 1% price fluctuation can lead to the principal being wiped out with 100x leverage.

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### 3. **Frequent Trading and Transaction Fee Loss**
- Futures trading typically incurs high transaction fees (e.g., 0.05%~0.1% per transaction), and frequent opening and closing of positions can lead to accumulated fees that erode the principal.
- **Calculation**: If you trade 10 times a day, the transaction fees may account for more than 1% of the principal, leading to significant losses over the long term.

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### 4. **Emotional and Strategic Errors**
- **Chasing up and killing down**: Retail investors are prone to follow the trend during FOMO (Fear of Missing Out) or panic, leading to buying at high points and selling at low points.
- **Overtrading**: Attempting to capture short-term fluctuations, but the actual success rate is lower than expected, resulting in accumulated losses.

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### 5. **Lack of Risk Control**
- No stop loss set or unreasonable stop loss, holding onto the position during losses, ultimately forced to close the position.
- **Counter-Trend Positioning**: Attempting to dilute costs, but the market continues to trend in one direction, resulting in increased losses.

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### 6. **Market Manipulation and Information Asymmetry**
- In the cryptocurrency world, there are manipulative behaviors such as large holders dumping, pumping, and fake breakouts, making it easy for retail investors to be "harvested."
- **For example**: The main funds create false breakouts to lure in buyers/sellers, triggering retail investors' stop-loss orders before reversing their operations.

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### 7. **Funding Rate Impact (Perpetual Contracts)**
- Perpetual contracts require the payment of funding rates. If the direction is wrong in a trending market (e.g., going short while bulls dominate), you will need to continuously pay fees, increasing costs.

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### 8. **Cognitive Bias and Technical Limitations**
- Underestimating market complexity, relying on intuition or rumors, and lacking a systematic trading strategy.
- Ignoring position management, profit-taking and stop-loss discipline, or being overly confident.

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### **How to reduce losses?**
1. **Reduce Leverage**: It is recommended to use leverage below 5 times to reduce the risk of liquidation.
2. **Strict Stop Loss**: Limit single transaction losses to within 1%~2%.
3. **Avoid Frequent Trading**: Focus on high-probability opportunities to reduce transaction fee losses.
4. **Learn Technical Analysis**: Understand basic tools such as support/resistance and trend lines.
5. **Simulated Trading Practice**: Verify the strategy before using real funds.

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### Summary
The essence of cryptocurrency contracts is high-risk gambling. A small position is only one part of risk control; if combined with high leverage, emotional trading, or strategy flaws, losses can still occur. Long-term profitability requires a combination of position management, technical analysis, discipline, and acceptance that "losses are a part of trading." For most retail investors, spot trading or dollar-cost averaging may be a more prudent choice.