Another important purpose of adding leverage to futures companies is to provide investors with greater liquidity. Higher leverage means that more transactions can be completed with less initial investment. Therefore, futures companies usually use leverage to expand the trading scale, increase their own income, and provide investors with more trading opportunities.
Although the potential benefits of leverage ratio are attractive, the risks of futures investment are also high. Therefore, investors must fully analyze and carefully evaluate the market and master risk management when adding leverage. Only by maintaining appropriate leverage ratio and making reasonable decisions can we get long-term benefits from investment.