First, the characteristics of futures trading
1. Two-way futures trading: One of the biggest differences between futures trading and the stock market is that futures can be traded in two directions and futures can be sold short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and make up low. Going long can make money, and shorting can also make money, so there is no bear market in futures. In a bear market, the stock market will be depressed, but the futures market is still beautiful and the opportunities remain the same.
2. The cost of futures trading is low: countries that trade futures do not collect stamp duty and other taxes, and the only cost is the transaction fee. At present, the handling fees of the three major domestic exchanges are all around 20,000 to 30,000. Plus the extra fee of the brokerage firm, the unilateral handling fee is less than 10000 of the transaction volume. (Low cost is the guarantee of success)
3. Leverage of futures trading: The leverage principle is the charm of futures investment. Trading in the futures market does not need to pay all the funds. At present, domestic futures trading only needs to pay 5% margin to obtain futures trading rights. Due to the use of margin, the original market has been enlarged ten times. We assume that the copper price will close at the daily limit on a certain day (the daily limit of futures is only 3% of the previous trading day). Correct operation. Our capital profit rate is 60%(3%÷5%), which is six times the daily limit of the stock market. You can only make money if you have a chance.
4. Double the trading opportunities of "t+0": Futures is a "T+0" trading, which maximizes your capital utilization. After mastering the trend, you can close your position at any time. (Easy access can increase the safety of investment)
5. Futures is a zero-sum market, but it is greater than a negative market: futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the inflow and outflow of funds and the extraction of transaction costs, the total amount of funds in the futures market is unchanged, and the profits of market participants come from the losses of another trader. The stock market has entered a bear market, the market price has shrunk dramatically, and with the meager dividends, the state and enterprises have absorbed funds, and there is no short-selling mechanism. The total amount of funds in the stock market will show negative growth for a period of time, and the total profit is less than the loss.