That is, the risks arising from the futures brokerage company's selection of customers and the establishment of entrustment. When choosing a futures brokerage company, the customer shall make a comparative selection of the scale, credit standing and operating conditions of the futures brokerage company, and sign a futures brokerage commission contract with the company after determining the best choice.

When preparing to enter the futures market, investors must make careful investigations, make careful decisions, and choose companies with strength and credibility.

liquidity risk

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Due to the poor liquidity of the market, it is difficult to do fast, timely and convenient trading in futures trading. This kind of risk is particularly prominent when customers open positions and level positions. For example, when opening a position, it is difficult for traders to open a position at an ideal time and price.

It is difficult to open positions in the market as expected, and the hedger cannot establish the best hedging portfolio; Hedging is difficult to close, especially when the futures price shows a continuous unilateral trend or is close to delivery.

The decrease of market liquidity makes traders unable to close their positions in time, resulting in heavy losses. Therefore, in order to avoid liquidity risk, it is important for customers to pay attention to market capacity and study the main composition of long and short sides to avoid entering orders.

A unilateral market dominated by a strong phase.

Risk of compulsory liquidation

Futures trading shall be carried out by futures exchanges and futures brokerage companies on a daily basis. Zaijie

In the calculation stage, because the company will settle the profits and losses of traders according to the settlement results provided by the exchange every day, when the futures price fluctuates greatly and the margin is not

If it can be replenished within the specified time, traders may face the risk of forced liquidation. In addition to the forced liquidation caused by insufficient margin, when the total position of the brokerage company entrusted by the customer exceeds a certain limit, it will also lead to

Kyrgyzstan was forced to close its position, which in turn affected the situation of customers being forced to close their positions. Therefore, customers should always pay attention to their financial situation when trading, to prevent forced liquidation due to insufficient margin and bring huge losses to themselves.

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Delivery risk

Futures contracts are time-limited. When the contract expires, all open contracts must be delivered in kind. Therefore, customers who are not ready for delivery should close their positions in time before the contract expires, so as not to bear the delivery responsibility.

This is a special point of the futures market compared with other investment markets. New investors should pay special attention to this link and try not to hold the contract in their hands until it is close to delivery, so as not to fall into the predicament of being forced to close the position.

market risk

In futures trading, the biggest risk for customers comes from the fluctuation of market prices. This price fluctuation brings the risk of trading profit and loss to customers. Because of the leverage principle, this kind of risk is magnified, and investors should always pay attention to prevention.