Can you sell what you don't have first? Some friends will definitely say, of course, you can't sell anything, but you can do it in the futures market. Futures trading can not only buy low and sell high, but also sell low through naked selling.
Why can futures allow traders to run naked without anything?
The reason is, in the final analysis, the type of financial assets. Futures is an agreement. In the future, the delivery time of contracts for buying and selling certain assets will be delayed, so the foreign party does not need to have the corresponding spot assets when selling the contract until the delivery date when the goods are available. Therefore, futures can be sold naked, but for individual investors who can't enter the physical delivery link or enterprises who don't want to deliver, they only need to close their positions through reverse trading before the contract expires, that is, if you sell before. The two-way trading system of buying back the same variety and quantity of contracts before the contract expires can make you gain profits when the market rises or falls, without waiting for the arrival of a bull market. It can be said that this is one of the main charms of futures.
Where is the risk of futures?
First of all, let's talk about the first thing. The risk of futures is that it is a leveraged transaction, which is scientifically called margin trading. For example, you have 654.38+ 10,000 yuan futures in your account now, and you have received 654.38+00% margin. In other words, you can use 654.38+00,000 yuan to make 654.38+00,000 yuan, which is called leverage. Is 10 times, so in the blink of an eye, if you get 10%, you earn 10 million yuan, and if you lose 10%, you lose 10 million yuan. So how much is the principal used? You only use the principal of 654.38 million yuan, which means that the doubling of futures is the same as the speed of coal transportation, which is the biggest risk point you face. But here, you might as well learn more about futures, such as two-way trading, such as T+0 trading, which can let you avoid these risks as quickly as possible and bring you losses in the first place, so you know a market and master a market.
Where are the risks of futures?
I tell you, the risk of futures lies in human nature. In fact, there is no risk in the futures market itself, and the risks are all caused by ourselves. So when we watch some markets rise or fall, but the market doesn't give you the corresponding market, your greed, fear, panic and nervousness, looking for excitement or certainty, all follow. In this case, you will actually find that you have made money and lost money in the whole account.