What does leverage control mean in futures trading strategy? 1 time, 2 times, 3 times or something.
Hello, when using lever, the loss will increase. Therefore, it is important to understand that the lever needs to be controlled. Leveraged trading is to use small funds to invest several times the original amount in order to obtain multiple gains or losses relative to the volatility of the investment target. Because the increase of the margin is not proportional to the fluctuation of the subject matter, the risk is greater. If leverage is used improperly, it may have a great impact on the account. Through leveraged trading, more trading volume can be obtained and income can be increased; But if the market runs counter to your transaction, it will inevitably cause greater losses. Because the profit margin of high leverage ratio is low, there are more positions that can be opened than those of low leverage ratio, so some people's positions are too heavy to push, which leads to slight fluctuations in the market.