If a futures transaction is worth 1 million, you may only need 100,000 funds to do it, that is, 10% margin, and the leverage ratio is 10 times. This 1 million business only needs to rise or fall by 10%. For you For a capital of 100,000, the loss and profit is 100%, that is, the risk and return are increased 10 times.

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For 100,000 yuan, if the margin ratio is 10%, that is, 10 times leverage, in theory, transactions worth less than 1 million can be done without leverage. That is, the total value of your transactions does not exceed 100,000 of your own funds. Using full leverage means that the total transaction value reaches 1 million. Using partial leverage means that the total transaction value is between 100,000 and 1 million.