The so-called margin trading, in layman's terms, is to use the leverage principle to make good use of money. Let's take an example: 1 goods 10 yuan, which you can own and use with a deposit of 1 yuan. If you have 10 yuan, you can use 10 yuan to own 65438 items. If the price of each commodity goes up by 1 yuan, it will become 65438.

Silver deposits mainly have the following three functions:

First, price discovery. Price discovery is the function of silver futures trading, and silver futures price is the future embodiment of silver spot price.

Second, speculation is profitable. Because of its high leverage, margin trading has also become a tool for investors to speculate and make profits.

Third, hedging. Here, it is necessary to clarify the concept of silver hedging. Silver hedging refers to the market operation mode that gold traders adopt to lock in risks or profits at the current value in order to avoid the market risks brought about by uncertain changes in future gold prices. Both futures margin trading and spot margin trading can achieve hedging.