The investment risks of futures include: the capital amplification function magnifies the income, but it also faces the risk amplification, so how to use the leverage of 10 times and how much to use it will vary from person to person. A higher level can use more than five times or even enough leverage. If those with lower levels also use high leverage, it will undoubtedly make the risk out of control. Exchanges and futures brokerage companies have to settle accounts every trading day. When the investor's margin is insufficient and below the specified proportion, the futures company will forcibly close the position. Sometimes, if the market is extreme, there will even be short positions, that is, all the funds in the account are lost, and even the futures company needs to pay the part whose losses exceed the account margin. Ordinary investors do not want to buy more soybeans in a few months, nor do they want to sell copper in a few months. If the contract is held until the delivery date, investors need to collect enough funds or goods for delivery (the payment is about 10 times of the deposit).
The position limit system refers to the system that the futures exchange restricts the number of positions held by members and customers in order to prevent the manipulation of market prices and the excessive concentration of futures market risks on a few investors. If the amount exceeds the limit, the exchange may, as necessary, forcibly close the position or increase the margin ratio. The large-sum declaration system means that when the speculative position of a member or customer's position contract reaches more than 80% (inclusive) of the position limit stipulated by the exchange, the member or customer should declare his capital and position to the exchange, and the customer can declare it through the brokerage member. The large household declaration system is another system closely related to the position limit system to prevent large households from manipulating market prices and control market risks. In futures trading, any trader must pay a certain proportion (usually 5- 10%) of the value of the futures contract he buys and sells as the fund guarantee for the performance of the futures contract, and then he can participate in the futures contract trading and decide whether to add funds according to the price change. This system is the deposit system, and the funds paid are the deposit. The margin system not only embodies the unique "leverage effect" of futures trading, but also becomes an important means for the exchange to control the risk of futures trading.