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What are the advantages and disadvantages of leveraged stock trading?
Financial leverage enables some people who lack funds to seize the favorable entry time and make quick profits, which is one of them; Second, financial leverage can make people who do other businesses not delay the operation of their businesses by investing money in the futures market. Third, financial leverage needs the supervision of investors, which is a reminder to users, so that users can stop losses in time so as not to put all their funds into losses. Step-by-step capital investment also limits investors' gambling psychology to a certain extent, and gains time for adjusting operation ideas.

As long as the stock model is operated reasonably, it has certain benefits, and it also improves the efficiency of the use of funds, which is beneficial to both sides.

Most investors have good profitability and risk control ability, but due to the small amount of funds, their trading ability and profitability cannot be fully exerted. The most direct way to solve this problem is to expand working capital. Using capital leverage, in the big market, as long as we grasp an opportunity, we can maximize the benefits. Financial leverage is a business that provides investors with rich trading experience and good risk control ability to enlarge their working capital.

The two sides of financial leverage stock trading cooperation are called traders and investors. Traders refer to investors who need to expand their operating funds, and investors refer to individuals who provide funds for traders. The cooperation process is as follows:

First of all, traders and investors sign cooperation agreements, stipulating financial leverage and risk control principles;

Secondly, the trader, as the party who bears the trading risk, pays the risk deposit to the investor in order to obtain a trading account that is 2-5 times the investor's own funds (this is the trader's own funds);

After that, traders will operate the account independently, and investors will monitor the risk of the account according to the contract to ensure the safety of their investment.