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The relationship between investment leverage and investment risk

The greater the leverage, the greater the risk!

For example, 5 times and 100 times, if you make 100 ounces of gold at the same time (according to 210 yuan per gram), 5 times will cost more than 130,000 yuan, and 100 times will only cost more than 6,000 yuan, but the fluctuation is 1 %, 5 times the loss is small (the profit is also small), and 100 times is enough to bankrupt you (the profit is also large), but 100 times is not suitable for large market fluctuations, and 5 times is casual, even if the direction is wrong. The loss is not big, and the risk is not as high as 100 times. It is recommended not to make high-leverage investments