1. The lower the margin, the higher your leverage and the greater the risk;

2. In case of fluctuation, if you don't have the funds to cover the position, it is likely to explode immediately;

3. The higher the margin of futures trading, the lower the leverage and the higher the security.

The epidemic situation in China has been well controlled and the economy has recovered very quickly. More and more people begin to pay attention to China's capital market. As a tool for investment and financial management, stocks and futures are favored by many people. Relatively speaking, futures are more risky and require higher operational skills, but many people do not have a clear understanding of futures risks, which will bring great trouble to investment.

First, the lower the margin, the higher your leverage and the greater the risk.

Futures basically have 2 or 3 times leverage, so futures trading needs margin. In general, the lower the futures margin, the higher the leverage of your futures, the heavier the position and the greater the risk.

This low margin trading model has some problems in strategy, because the anti-risk ability is too weak, which can easily lead to blood loss.

Second, the lower the margin, the easier it is to break out.

The low margin of futures means that there is no extra money to cover the position. If the futures market fluctuates slightly, you will basically be forced to close your position.

Low margin in futures also means high returns and high risks, because low margin means that your position is very heavy and your leverage is very high, so that you can maximize your profits and take higher risks, which is not recommended by ordinary investors.

Third, the higher the margin of futures trading, the higher the security.

No matter what investment you make, safety is the most important thing for everyone to consider. If you have the idea of gambling in investment transactions, you will basically lose, so you must invest? Is it steady? Words come first.

For ordinary futures investors, high margin and low leverage are the transactions that everyone should pursue, and making money stably is the top priority of investment. Don't ignore risks in order to maximize profits. This is a very stupid strategy.