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What is the trading risk of stock index futures?
Are you aware of the high risk of futures trading? Engaged in futures trading, it is possible to make money, it is also possible to lose money, and sometimes it may be disastrous. It stands to reason that these are basic common sense, why should we emphasize them deliberately? This is because for traders who are new to the market, the expectation of profit is relatively high, but because they have no actual combat experience and loss experience, their understanding of risk is usually vague. Some new investors will think that futures trading is risky, but as long as I am careful, the possibility of loss is very small. Even if you lose money, you won't lose much. I will seize the opportunity and win everything. Although this idea is reasonable, it still reveals a lack of understanding of risk awareness. The reasons are as follows: first, in futures trading, risks and returns are symmetrical, and prudence can certainly reduce risks, but it also reduces potential returns; Secondly, in an emergency, sometimes even if you are careful, you will inevitably suffer a big loss. For example, if you hold a small position and encounter a continuous stop loss in the opposite direction, you will still lose a lot. Third, the determination of opportunities is often subjective. If the objective situation is just the opposite, a big win is likely to become a big loss; Finally, under a cautious attitude, first-time traders will often change their cautious attitude if they make some small money continuously. They will think, if the previous transaction volume was larger, wouldn't they earn more money? Under the guidance of this idea, risk awareness will gradually fade away. It can be said that all successful people in futures trading have this experience, from caution to carelessness, and then to caution after eating a big loss.