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What are the reasons for the profitability of iron ore futures?
Price fluctuation, risk management, leveraged trading.

1. Price fluctuation: The iron ore market price will fluctuate with the changes of supply and demand, macroeconomic factors and geopolitical risks. Investors can participate in and benefit from this price fluctuation through futures trading, such as buying contracts when prices rise and selling contracts when prices fall, from which they can get the difference income.

2. Risk management: The futures market provides a tool for hedging risks. Iron ore producers or users can use futures contracts to lock in future purchase or sales prices and reduce the impact of market price fluctuations on their business. There is a price difference between the market price and the locked price, and enterprises can make profits through futures trading to make up for the losses of actual trading.

3. Leverage trading: Futures trading allows investors to use leverage, that is, to control contracts with greater value with less money. This means that investors can get higher return on investment with relatively small capital investment. The market trend is in line with investors' expectations, and leveraged trading can bring greater benefits.