How to use the five-fold leverage of commodity futures, please give an example and be more detailed.
Leveraged trading, also known as margin trading, multiplies the contract value by the margin ratio to get the margin amount to be paid for a stock index futures contract. Stock index futures shall be settled without debt on a daily basis, and the deposit in the investor's account on each trading day shall not be lower than the prescribed level. Suppose Hong Kong Hang Seng Index futures quote Hang Seng Index is 173 15, then the value of a futures contract is HK$ 865,750. If the futures company stipulates that the margin ratio is 10%, the margin of a Hang Seng Index futures is HK$ 86,575. When the unfavorable daily price change is greater than the balance of the margin account, the lower margin level leads traders to default, encourages speculative funds to establish positions, and intensifies market volatility. Higher margin will increase the transaction cost, leading to a decline in the trading volume of stock index futures. In short, the level of margin setting must be weighed between the different consequences caused by high and low. Generally speaking, the deposit is the deposit you need when you trade, and it will be returned to you after the transaction. 2. Futures trading is based on hands, with 5 tons in one hand and 10 tons in the other according to different commodities. Your calculation method plus this concept should be no problem!