Leverage effect "leverage effect" is the original mechanism of futures trading, that is, the margin system. The "leverage effect" not only enlarges the tradable volume of investors, but also doubles the risks taken by investors.

explain

Suppose a trader uses a sum of 50,000 yuan for stock or spot trading, and the risk of the trader is only brought by stocks or commodities worth 50,000 yuan. If all the funds of 50,000 yuan are used for stock index futures trading, the risks borne by traders are brought by stocks or commodities worth about 500,000 yuan, which magnifies the risks by about ten times, and of course the corresponding profits are also magnified by ten times. It should be said that this is not only the fundamental risk source of stock index futures trading, but also the charm of stock index futures trading