The essence of futures is to sign forward contracts with others to buy and sell goods (or stock indexes, foreign exchange, interest rates) in order to achieve the purpose of maintaining value or making money. If you think the futures price will go up, go long (buy and open) and close (sell) when it goes up. If you think the futures price will fall, short (sell to open a position) and close a position by falling (buy).

For example, if you buy the futures of commodity A, his margin ratio is 1: 10, and his transaction price is 10000 yuan per unit. Then you only need to pay 1000 yuan to buy one unit of commodity A. If the price of commodity A rises by 10%, it will double, and 1000 will become 2000.

If the price of commodity A falls by 10%, it will lose money. At this moment, if you close your position, your 1000 will become 0. If you want to continue holding positions, you must add margin. Many people often add margin because they refuse to accept the market, and finally their families are ruined.

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Problems that should be paid attention to when speculating futures;

1, make good use of financial budget

You can't treat the funds you need for life as capital, don't have the psychology of gain and loss, don't be too nervous, and you can't be unrestrained. If investors are not bound by themselves, they may not use their own liquidity as funds for futures trading, because the pressure of funds will mislead investment strategies, increase trading risks and cause greater mistakes.

2. Make good use of the free simulation account.

Novices in futures trading should be patient and step by step. Don't rush to open a real trading account. Investors can try to simulate the experience of the account before opening a real trading account. As for how to open an account, HSI analysts advise investors to know more about futures before making a decision.

3. Futures trading can't just rely on luck and intuition.

The gambler's psychology in futures trading is not desirable. Such profits will only bring you short-term returns, and in the long run, you will pay a higher price.

4. Use stop-loss orders to reduce risks.

On the one hand, stop loss reduces the loss, on the other hand, it is also profitable, because if it is not stopped in time, the loss will be even greater.

Step 5 do your best

Futures investors must understand the management of funds, maximize the return of funds and maximize their own capabilities, rather than operating beyond the scope, which will eventually lead to failure.