: trading characteristics of futures
1. Bidirectional
One of the biggest differences between futures trading and stock market is that futures can be traded in both directions. Futures can be bought long or sold short. When the price goes up, you can buy low and sell high, and when the price goes down, you can sell high and make up low. Being long can make money, and being short can also make money, so there is no bear market in the futures market. In a bear market, the stock market will be depressed, while the futures market will remain prosperous and opportunities will continue to exist. )
2. Low cost
Futures trading countries do not levy stamp duty and other taxes, and the only cost is transaction costs. The handling fees of the three domestic exchanges are about 2/ 10000 or 3/ 10000. Plus the extra cost of the brokerage, the unilateral handling fee is less than one thousandth of the transaction amount. (Low cost is the guarantee of success)
3. Influence
Leverage principle is the charm of futures investment. You don't need to pay all the money to trade in the futures market. Domestic futures trading only needs to pay 5% margin to get the right to futures trading. Due to the use of margin, the original market has expanded more than ten times. Assuming that the copper price is capped on a certain day (the daily limit of futures is only 3% of the previous trading day), the operation is correct. The capital profit rate is 60%(3%÷5%), which is six times the upper limit of the stock market. You can only make money if you have a chance.
Double your chances.
Futures is a "t+0" transaction, which makes your capital use reach the limit. After grasping the trend, you can close your position at any time. (Convenient access can increase the security of investment)
5. Greater than negative market
Futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the inflow and outflow of funds and the extraction of transaction costs, the total amount of funds in the futures market remains unchanged, and the profits of market participants come from the losses of another trader. The stock market has entered a bear market, the market price has shrunk dramatically, and dividends are meager. Countries and enterprises absorb funds, and there is no short selling mechanism. The total amount of funds in the stock market will show negative growth for a period of time, and the total profit is less than the loss. (Zero is always greater than negative)