1. Price fluctuation: Cotton futures prices are affected by many factors such as supply and demand, policy changes and natural disasters. And the price fluctuates greatly. This makes the investment risk of cotton futures higher, and investors need to bear the loss risk caused by price fluctuation.
2. Leverage effect: Cotton futures trading has leverage effect, and investors can control larger assets through smaller capital investment, which also magnifies certain risks. If there are adverse changes in the market, investors may face the risk of additional margin or forced liquidation.
There are some disadvantages and risks in cotton futures, which require investors to have certain professional knowledge and good risk management ability.