Why is futures 10 times the principle of capital leverage?
Why futures are 10 times the leverage principle: futures are essentially long-term standardized contracts, so you don't need to pay 100% of the funds (stocks are spot transactions, and you need to pay 100% of the funds). The payment of trading deposit is the guarantee to fulfill the contractual obligations. When we sign a formal contract, there are usually three parties-the signing parties and the notary public. When signing a contract, all three parties have the responsibility to urge or try their best to ensure that the contract can be fulfilled. Because funds are costly, both parties can only pay the minimum deposit on the premise that the contract can be fulfilled. The general principle of setting the leverage ratio of derivatives: leverage is inversely proportional to volatility. The better the risk control ability, the greater the leverage ratio.