Buying 1K euros and then buying 1K Swiss francs is a hedge. The two currencies are almost the same, and the profit and loss are roughly the same!
Lever: It's just a pole! Alas, Archimedes said that as long as the length is appropriate, you can walk off the earth! Mostly used for futures and margin.
The deposit is used as collateral. It enables traders to use part of the funds to trade. In the foreign exchange market, the leverage ratio is 1% to 2%, which makes investors actively trade under high leverage ratio.
International gold and foreign exchange margin are leveraged transactions, and the investment income expands and the risks also expand! Under the leverage of 1000 times, the list of 1 000 dollars is equivalent to 65438+ million dollars, and the profit is110000, so multiply it by 65438+ million dollars! And you only need to pay a deposit of $65438 +0000!
Futures: it is a deformed form of forward contract! The two sides are buying and selling futures commodities, not futures! What this example means is that I pay a part of the deposit now and promise to buy your goods at some time in the future. The price is the result of negotiation between both parties! The specifications of the goods are stipulated in advance!
Financial futures: buying and selling future financial products! For example, the price of buying and selling stocks in the future or the price of gold or foreign exchange! For example, stock index futures, that is, now I am bullish on the stock index, I buy the stock index that may appear in the future, and the other party must be bearish on the future stock index, and he will sell it! It should be leveraged trading. A point corresponds to 50 yuan or 100 yuan, and then there are hundreds of futures contracts, so a point corresponds to at least 5000 yuan or 100 yuan! Look at the explanation of Hang Seng Index!
Hedging: Simply put, it is to protect the present and future value! It refers to the trading activities in which the futures market is regarded as a place to transfer price risk, and futures contracts are used as temporary substitutes for buying and selling goods in the spot market in the future, so as to insure the prices of goods that you need to buy in the future.
For example, a copper company signed a copper concentrate supply contract with a foreign metal group company in June, 1999, with a metal content of 3000 tons. In addition to physical and chemical indicators, the contract specifically stipulates that TC/RC is 48/4.8, the pricing month is1999+February, and the contract settlement price is LME (London Metal Exchange) March.
After signing the contract, the company was worried that the continuous large-scale production restriction activities might lead to a sharp rise in copper prices, so it decided to hedge the concentrate trade. At that time, the LME March copper contract price was 1380 USD/ton. (Later, the price of copper really rose. By the pricing month, the contract price of LME March copper has risen to 1880 USD/ton, and the average settlement price of March copper is 18 10 USD/ton. )
So after the contract was signed, the company immediately bought a 3000-ton futures contract in the futures market at the price of 1380 USD/ton (that is to say, the target cost of copper concentrate determined by the company =1380-(48+4.8 * 22.5) =1224 USD/ton), and the price was 6. (Copper concentrate price =1810-(48+4.8 * 22.5) =1654 USD/ton) The company sold 3,000 tons of futures contracts in the futures market at the price of 1880 USD/ton.