Generally, futures exchanges raise the margin in order to obtain a yield that fluctuates several times relative to the investment target, or to lose money. Because the increase or decrease of margin (small funds) does not move according to the fluctuation ratio of the underlying assets, it is very risky.

Leveraged trading is also called virtual trading and deposit trading. That is, investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for foreign exchange transactions, that is, to enlarge the trading funds of investors. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less money customers need to pay.

Extended data:

Futures trading is a standardized contract trading method in which investors buy and sell various commodities on the futures exchange after paying a deposit of 5%- 15%. Ordinary investors can make a profit by buying low and selling high or selling high and buying low.

Spot enterprises can also use futures to hedge and reduce their business risks. Futures traders generally buy and sell futures contracts through futures brokerage companies. In addition, the obligations they have to undertake after buying and selling the contract can be relieved by reverse trading (hedging or liquidation) before the contract expires.

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