Ten times leverage short has two meanings, one is the leverage mechanism of futures, the other is the short mechanism of futures, both of which are futures terms. Ten-fold leverage is to enlarge the capital ten times according to the ratio of 1: 10, which will improve the utilization rate of funds and bear higher risks. Ten times short refers to the margin system of futures, that is, one time margin can be used as a ten times short futures contract.

Brief introduction of lever

In the stock market, there are several ways to use leverage: first, the leverage should not be too high, and the leverage of ten times is relatively high. Although it earns a lot, the operating space is actually relatively small; Second, borrow as much as you want, and don't borrow all the funds just because the plan is convenient. If the stock trend is bad, it is easy to lose money; Third, multiple loans. If the amount of funds is relatively large, it is more appropriate to borrow by installments, either monthly or daily, which can effectively control the funds in the account and effectively reduce the cost of funds. Short selling is generally carried out when the stock price falls, and buying and closing positions when the stock price falls can make money.