The leverage of futures refers to the ratio of 1/ margin. The higher the margin ratio, the lower the leverage. Conversely, the lower the margin ratio, the higher the leverage. The leverage ratio of regular futures products should be about 8~ 12 times. In short, the leverage effect is to amplify the multiple of winning or losing.

Futures leverage means that futures are margin trading, with a margin of 10% and a leverage of 10 times. When the futures contract price fluctuates by 2%, the profit and loss reflected by the margin will be enlarged by 10 times, that is, 20%. This is the benefit and risk of adding leverage.