📊 The essence of contract trading is liquidation. Exchanges extract profits through fees and spreads, while retail investors face a negative expected value in the game. The leverage mechanism amplifies risk: with 10x leverage, a mere 10% fluctuation can lead to liquidation, and the market's daily fluctuations easily exceed this threshold. Even with correct long-term judgments, forced liquidation can occur due to short-term volatility.

🧠 High leverage stimulates greed, allowing impulse to take precedence over rationality. When losing, traders refuse to stop loss and instead increase positions in hopes of a "comeback", with the gambler's psychology being infinitely magnified; when profitable, fear leads to premature liquidation, creating a vicious cycle of "cutting profits and amplifying losses", making long-term profitability nearly impossible.

🏢 Institutions possess professional teams, advanced systems, and ample funds, utilizing algorithmic trading to obtain stable profits from retail losses. The exchange is the biggest beneficiary, profiting through spreads, interest, and liquidation margins. User liquidations are not accidents but the core of the business model.

⚙️ Exchanges manipulate results through slippage adjustments, delayed execution, and "spike injections". During market fluctuations, stop-loss orders are triggered precisely, causing a chain reaction of liquidations. The regulation of the cryptocurrency market is weak, with large players intentionally creating volatility, and some exchanges directly betting against users.

⏰ Every trade faces the risk of liquidation, and a single liquidation can wipe out all profits. This "Russian roulette" becomes more dangerous the longer it lasts. Even professional traders find it difficult to achieve long-term stable profits; market uncertainty, black swan events, and emotional fluctuations can all be fatal, with one mistake under high leverage potentially destroying years of accumulation.

🎯 The essence of liquidation in contracts is an objective description of market rules. High leverage, psychological manipulation, technical methods, and time pressure form a harvesting network. For institutions, it's a hedging tool; for retail investors, it's like moths to a flame.

💡 True wealth accumulation requires time, knowledge, and patience, rather than speculative get-rich-quick schemes. Instead of seeking overnight riches in the contract market, it's better to learn investment knowledge, establish reasonable allocations, and engage in value investing. Recognize the "essence of liquidation" to avoid becoming a victim of this cruel game and to embark on the right path to wealth.