Last night, I had insomnia, and while browsing the market, I noticed a certain dark horse coin was surging. I immediately realized that there might be a whale orchestrating a bullish breakout, which happens around 3 or 4 a.m. when domestic users are asleep, and foreign funds are active.

Since I wasn't very familiar with contract trading at the time, I was a bit confused. I placed a short order at the highest price, leveraging 2x with 1000 USDT. Unexpectedly, this order was automatically closed by the system. I was a bit stunned— I hadn't set any take profit or stop loss, so theoretically, it should have been closed manually by me.

Later, I understood that automatic liquidation usually occurs when certain forced liquidation conditions are triggered. In contract trading, there's an invisible risk threshold— when losses reach a certain percentage and the margin is insufficient to maintain the position, the exchange will forcibly close the position to protect both parties' interests. That was the case this time. The 1000 USDT order was quickly wiped out in unfavorable market conditions.

Looking back now, contract trading is indeed not simple. Placing an order without setting a stop loss is basically like going naked. I need to be more cautious next time.