What are the main risks of futures?
In the futures investment market, in addition to the general market risk, investors' excessive speculative psychology and leverage effect will increase the risk of futures trading. Therefore, how to avoid market risks is the most important issue in futures investment. So what are the main risks of futures?
1, leverage risk
Because of its ultra-high leverage, futures amplify the expected returns, but because of this, the risks are also amplified simultaneously. Therefore, it is very important for investors to grasp the balance between risk and leverage.
2. Compulsory settlement risk
In each trading day, if the investor's margin is lower than the specified proportion, the futures company will carry out compulsory liquidation according to the regulations. In this process, the funds in the investor's account may lose money.
3. Delivery risk
Although futures are essentially futures trading, in the futures market, investors buy and sell futures, earn the difference and get the expected income. When futures are delivered, their prices may not necessarily develop in the direction and price that investors hope, which may cause investors to lose money.
4. Trading platform risk
A formal trading platform is very important for investors. If you encounter a black platform, you may use the expected return of investors' daily trading or use information asymmetry for speculative arbitrage, which will make investors lose money.
The above contents about the main risks of futures are all here, and I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.