Futures allocation refers to a form of investment in which investors (investors/companies) lend funds and traders (futures traders) entrust them to manage their finances in the futures market. The funds lent by fund-matching companies can be used for investment in commodity futures and stock index futures, and its fundamental purpose is to solve the financial difficulties of customers and enlarge the leverage of funds.
Many futures investors have long-term trading experience, but the amount of funds is insufficient and the profits cannot be expanded. Investors only need to pay a certain risk margin to bear the trading risk, and the company provides investors with operating accounts for futures trading.
Futures trading itself is a high-risk financial transaction, and the allocation of futures funds magnifies the leverage effect of futures trading, which is more risky. Therefore, not a professional futures investor, it is not recommended to allocate futures funds.
Second, how does futures fund-raising work?
Futures allocation requires investors and traders to sign contracts and then operate. The specific operation process is as follows:
1. Familiar with the business process of futures fund allocation.
Before handling the futures allocation, we must first have a comprehensive understanding of the trading methods, restrictions and risks of futures allocation. Be sure to choose the appropriate allocation ratio, cycle, capital cost and handling fee according to your actual situation, especially for beginners. The bigger the distribution ratio, the better. You should choose the appropriate allocation ratio according to your own needs, neither too high nor too low, generally about five times, so that you can control risks while expanding funds, because when the market fluctuates greatly, too high leverage ratio will lead to short positions and make investors suffer losses in fluctuations.
2. Matching trading accounts
Generally, the fund-raising company will prepare the trading account for the fund-raiser within half an hour and contact the trader for confirmation.
3. Deposit risk deposit
After checking and confirming the account, the trader will deposit the risk deposit into the collection account designated by the fund-raising company according to the contract, and the fund-raising company will transfer the risk deposit and the investor's priority funds into the trading account at the same time.
Step 4 start trading
After the fund-raising company transfers the funds into the trading account, traders start trading commodity futures, and the risk control department of the fund-raising company will control the risks accordingly. During the trading cooperation, both parties shall strictly follow the provisions of the futures fund-raising cooperation agreement.
3. What are the risks of futures fund allocation?
Futures allocation is a high-risk financial behavior, and its risks mainly include:
1, legal risk
At present, there is no clear law to determine whether futures fund-raising is illegal, but the general fund-raising industry is a gray area, and the trading behavior of this fund-raising is not protected by law, and the source of funds for fund-raising is often not formal channels (such as banks), mostly private capital, which has certain uncertainty.
2. Credit risk
There are credit risks in futures fund-raising companies, including misappropriation of customers' funds, absconding, illegal liquidation and fraud. After all, the account used by customers does not belong to themselves, but belongs to the fund-raising company, and the security of funds is the most concerned issue for customers.
3. Operational risk
The profit model of the fund-raising company is transaction fee and interest. For the allocation of small funds, the allocation company will generally talk to the futures company about a very low commission rate, and then quote the customer a higher commission rate to earn the intermediate price difference. In order to earn the handling fee, the fund-raising company will set a minimum number of transactions for customers (generally not less than 5 times per trading day), otherwise it will charge a certain interest fee. This has caused psychological pressure on customers, and customers will be forced to trade, thus increasing the operational risk of trading.