The strange phenomenon in the derivatives market: why do liquidation tragedies happen every day, and why do people keep rushing in?

That's a good question. A careful look reveals that most beginners simply haven't understood the logic of leverage trading, which is no different from gambling on a betting table.

Platforms display leverage numbers like 5x or 10x, and many people genuinely believe their risks are controllable. But a careful calculation exposes the trick—an account with 10,000 USDT, for example, gets liquidated if it loses 500 USDT, yet they open a position worth 30,000 USDT. On the surface, it's 5x leverage, but in reality, it's playing with 60x risk, stepping on fire. Many people don't realize this threshold at all and are secretly celebrating.

Those who truly understand leverage trading know a fundamental principle: the core of this is risk hedging, not gambling. The profits you make are not falling from the sky but come from others' liquidation funds. In other words, the trading market is a zero-sum game.

How do professional traders operate? They spend 70% of their time waiting. They stay firm and do nothing until the market reaches their target, then strike decisively. Ordinary people? They tinker in the market every day, exhausting their capital on ineffective operations.

To survive and profit in the derivatives market, the key is two words: against human nature.

When others panic and chase prices, you must stay calm. When others greedily add to their positions, you must stop. Stop-loss must be a firm barrier; a single loss should never exceed 5%. But once you're profitable, you should exit faster than anyone else, setting take-profit points at least twice as far from the stop-loss.

Many amateurs say that contracts are just gambling, but this judgment is biased. You get liquidated because you rely on gut feelings; we consistently profit because we rely on data and logic. Those still placing orders based on feelings, I really suggest you go to bed early—at least in your dreams, you won't lose anything.