In the currency circle, it is often heard that an investor has been exposed. Dong, an old man in the currency circle, revealed that he had no risk awareness, and the funds he contacted a few years ago exceeded 654.38 billion yuan.
Like many people, in the past, I had no motivation to understand and learn about futures. I even think that futures is a big gamble. Gambling for a long time will lose.
It was not until I saw the user "Mr. Lulu Investment Guan Er" sharing his ideas and experiences in the telegraph community of Lulu that I gradually realized that futures margin, as a financial tool, is not good or bad in itself, but only related to the people who use it, such as cognition, mentality, trading strategy and so on.
An agreement to buy and sell futures is usually called a futures contract. The first concept you need to know in a futures contract is leverage. The essence of leverage is to amplify gains and losses. When using the right strategy, it can amplify your gains, and when using the wrong strategy, it will amplify your losses.
Take the futures trading rules of D network as an example: leverage multiple = contract funds/margin.
Among them, contract funds = opening price * lots * contract multiplier, and the meaning of contract funds is the amount of funds bought after adding leverage.
The specific lever calculation method is as follows:
Today, the price of BTCI is 8000 USD, and the contract multiplier of BTCI is 1, so the contract fund for buying 1 hand is 8000 */kloc-0 * 1 = 8000DEW.
1 hand deposit is 1000DEW.
Leverage multiple = 8000DEW/ 1000DEW = 8 times
If BTCI rises by 10% (to 8800) today, the profit will be 8800-8000 = 800DEW.
It can be seen that the principal (that is, the deposit required for opening the contract) has been spent 1 000 dew. If the subject matter of the spot market contract increases by 10%, the profit after leverage (800DEW) is 8 times of the original profit (1 1,000 Dew).
On the other hand, if the spot drops by 10%, 80% of the principal will be lost according to 8 times leverage.
(At present, the leverage ratio of online futures of D-Net is around 10, which will change with the change of target price. I believe there will be more other ways to play more stock index futures contracts online in the future. )
Therefore, the size of the risk directly depends on the opening ratio and leverage.
Imagine that if you open a Man Cang with 20 times leverage on OKcoin, as long as a 5% callback means that you will be forced to deliver.
If you are holding the psychology of gambling to win wealth and freedom, you can be very responsible to assure you that the day of working in the fields is not far away.
Because I know the leverage risk of futures, I don't want to get rich overnight, but only seek stable profit. It is suggested that the capital of each futures operation should not exceed 1% of the total held capital, and the leverage should be reduced by adding margin to cope with the risk of large market fluctuations.
If we simply understand futures as gambling, we can refer to sohu finance's long knowledge: Is speculating futures a kind of gambling? About the fundamental difference between the two:
1). The risk sources are different.
The risk of gambling is artificial.
The risk of futures is objective.
2) Different participation structures.
Gambling is full of speculators.
But futures trading is "two sides of one body", with speculators and hedgers. Hedgers need to enter the futures market to avoid spot risk, and the risk is only transferred to speculators.
3) Different social effects.
Gambling creates risks to please gamblers. Although it may be beneficial to individuals, it is not beneficial to society, and it is often even a breeding ground for social risks.
The risk of futures management is a very beneficial institutional arrangement in economy and society. Although the individuals involved may gain and lose in futures trading, the main period of hedging can be balanced on the whole, and the distribution of social risks will greatly benefit.
Shorting is very flexible, which is the charm of futures. What we need to do is not to avoid but to embrace, to maintain a calm and rational operating mentality and style, to enhance our cognition and to master the correct strategies.
After this week's firm trading practice, there are two main experiences:
First, whether it is homeopathic operation or contrarian operation, placing orders by steps can significantly reduce risks; However, contrarian operation will be passive, so we should seize the opportunity to take profit or stop loss in time.
Second, the risk of shorting is actually greater. In the face of rising market, even 100% margin may break out. If you buy more positions, even in the face of a plunge, 2 times leverage is relatively safe.
(Finally, the DEW team will launch stock index futures trading at the end of this month. Whether we can continue to inject new gameplay into blockchain trading application scenarios, let us wait and see ~)