#BTC资金流动性 Leverage Trading: A Double-Edged Sword or a Harvesting Machine?

On the stage of contract trading, the most dramatic rivalries are played out every day.

The typical patterns are nothing more than these: spot prices continuously pushing higher → retail investors see a good trend and follow suit to open long positions → suddenly a sharp drop hits and liquidates the longs → then they buy back at low prices in the spot market. The reverse operation is just as common: first smashing the order book to trigger short positions, then violently pushing prices up to force short sellers to liquidate and cut losses.

From 2021 to this year, behind those hundredfold and thousandfold tokens, there are almost always eye-catching liquidation charts showing catastrophic forced liquidations. Leverage, which seems to offer endless opportunities, is actually a highly efficient harvesting tool carefully designed by market makers.

This is not alarmist talk. Retail investors in the contract market either make small profits from price differences or face total loss of their capital, with few middle-ground options. Those who truly understand these game rules are either already out or have learned how to participate more conservatively.