Futures leverage means that futures are margin trading, the leverage is 10 times and the margin is 10%. Compared with the 2% fluctuation of futures contract price, the margin profit and loss will be enlarged by 10 times, that is, 20%, which is the profit and risk of leverage.

"Leverage" refers to the investment of borrowed money for arena trading; Leverage ratio, the ratio of assets to capital; The leverage effect in financial management is mainly manifested in the existence of specific expenses (such as fixed costs or fixed financial expenses). When one financial variable changes slightly, another related financial variable will change greatly. Leverage principle can help enterprises avoid risks reasonably and improve the efficiency of capital operation.

The leverage ratio reflects the cost ratio of investment stocks to investment certificates. Assuming the leverage ratio is 10 times, it means that the cost of investing in warrants is110 of investing in stocks, but it doesn't mean that the warrant price will rise 10% when the stocks rise.