Current location - Trademark Inquiry Complete Network - Futures platform - What does it mean to do futures plus leverage?
What does it mean to do futures plus leverage?
In the futures market, investors can increase the profit space and risk by adding leverage to futures. The essence of leverage is to borrow a certain proportion of funds to buy futures contracts under the guarantee of a certain margin. This investment method can make investors get more gains in the futures market with less principal, but once the market trend is unfavorable, investors will also bear greater losses.

Doing futures plus leverage is a high-risk investment method, which requires a certain understanding of the market and the ability to predict before operation. Only when the market trend is clear can we consider making leveraged investment. In addition, investors need to have certain financial strength to support their leverage operation, and must strictly control risks and not exceed their own tolerance.

In order to make use of futures, investors need to constantly study and study market trends and related policies, understand the characteristics and risks of various trading varieties, adhere to a sound trading strategy, set reasonable stop-loss points and take-profit points, and ensure the safety of funds. At the same time, investors should have enough psychological endurance, don't blindly follow the trend because of market fluctuations, and avoid big losses caused by greed or fear. Leverage operation is a high-risk investment method, which needs to be treated with caution.