Core Insights - The largest liquidation event in crypto history occurred, with over $19 billion in positions liquidated within 24 hours, raising concerns about the long-term health of the crypto market due to increased leverage [1] - The popularity of decentralized exchanges like Hyperliquid, which offers high leverage, has intensified competition among exchanges, potentially creating systemic risks [2][5] - The use of leverage in trading, particularly in perpetual futures, significantly amplifies risk, especially during volatile market movements [3] Leverage and Trading Dynamics - Leverage allows traders to use borrowed funds, increasing the risk of forced liquidation during market downturns [3] - Decentralized exchanges like Hyperliquid are offering leverage up to 40x without customer verification, contrasting with centralized exchanges that impose restrictions [4] - The competition among exchanges to offer higher leverage is driving systemic risk, as seen with the emergence of Aster, which offers leverage up to 1,001x on Bitcoin [5] Market Trends - Derivatives trading volume has more than doubled over the past year, with derivatives accounting for 73.7% of trading volume on centralized exchanges compared to spot trading [6]

Trading Features - Bybit TradFi 提供高达 10 倍、50 倍甚至 100 倍的杠杆交易 [1] - 旨在放大交易收益 [1] - 从小规模开始，逐步扩大交易规模 [1]

Group 1 - The article provides a summary of foreign exchange trading terminology for the week of May 19-23, focusing on key concepts that traders should understand [1][6]. - "Equity-based lot" is defined as a method of calculating lot size based on account equity rather than balance, allowing for a more conservative approach by considering floating losses [1][5]. - "Risk-based lot / Auto lot" is described as a method that automatically calculates the maximum allowable loss per trade based on set risk parameters, suitable for experienced traders [2][5]. Group 2 - "FX majors" refers to major currency pairs involving the US dollar and other highly liquid currencies, characterized by low spreads and high liquidity, making them popular for automated trading strategies [5][7]. - "FX minors" are defined as currency pairs that do not directly involve the US dollar, typically having higher spreads and lower liquidity, which can increase the risk of slippage and volatility [5][7]. - "Margin" is explained as the portion of funds that is frozen by the trading platform as a deposit for each order, with insufficient margin leading to automatic liquidation of positions [10]. - "Leverage" is described as a tool that allows traders to control larger positions with a smaller amount of capital, with a leverage ratio of 1:100 enabling a trader to control 100 times their investment [10]. - "Breakout" refers to a significant price movement after a period of consolidation, often targeted by trading strategies [13]. - "Consolidation" is characterized by price movements within a narrow range, where certain trading strategies may be favored [13]. - "Slippage" is defined as the difference between the expected price of a trade and the actual price at which the trade is executed, often occurring during volatile market conditions [14][15]. - "Drawdown" is explained as the maximum decline in account value from a peak to a trough, with a specific example illustrating a 50% drawdown [16].