Traders can open positions to buy futures contracts or sell futures contracts, which is different from the domestic mainstream stocks that can only be bought.

2. Margin trading

Participants don't need to have all the funds needed to buy and sell futures, but they can buy and sell 100 futures by paying a deposit of 50, commonly known as leveraged trading. Leveraged trading means that both risks and benefits are amplified. 50 yuan's deposit can be used to trade 100 yuan. If you earn it, will the income be more? At the same time, the risk is greater. If there is a loss, investors need to pay a deposit. If there is a loss in closing positions, they must make up for the loss before leaving. That is to say, the trading loss of futures is not limited to the principal!

Step 3 close the position

Futures bought by participants before opening positions can be closed and sold before the delivery date, and the same is true for opening positions and selling futures. If the delivery period has not ended, the actual delivery must be made. Because speculators don't really want goods, they will choose to close their positions before the delivery date and buy or sell futures contracts for the next month, commonly known as position adjustment.

Then why did China Bank's bill futures suffer huge losses? Affected by the global epidemic, the demand for oil has fallen sharply, and so has the price of oil. At that time, China Bank? Paper futures? Wealth management products have bought more oil futures, and Bank of China is a speculator. Under normal circumstances, positions will be closed and sold before the futures delivery date, and positions will be adjusted.

However, I don't know why these oil futures did not close their positions in advance, but suddenly closed their positions and sold them in large quantities after 10 on the afternoon of April 22, pushing the price of oil futures close to -38 USD/barrel, and other investors (mainly western countries) in the market immediately bought and traded. Because China Bank definitely didn't buy at a negative price before, but bought at a high price and sold at a low price, there was a huge liquidation loss.

The above is the sharing of futures trading methods. I hope to help friends who want to know about futures financing. Want to know more, please pay attention to this platform!