Taking stock index futures as an example, the trading rules are as follows: on the buying day, the stock index 1000 points, the price 1. 1 yuan, and the margin is 10% of the futures contract price. Party A buys a futures contract on the same day, and the price of the futures contract is1000 *1=1000 yuan, but Party A only needs to deposit1000 *100% =100 yuan in its margin account, that is, If the stock index falls to 900 points on T+2, the loss he suffers is (1000-900) *1=100 yuan, that is, when the leverage ratio is10 times, when the stock index falls1relative to the futures contract stock index. This is an example under extreme assumptions. General futures companies have stop-loss points. For example, if the margin loss reaches 10 yuan, the futures company will forcibly close the position, and the margin balance will be returned to the investor after making up the loss and related interest expenses. On the other hand, if the stock index rises by 10%, A will earn 100 yuan and the yield will be 100%.

In other words, margin trading in futures is to let you play big contracts with little money. You bear the profit and loss of 1 000 yuan with the investment principal of 1 000 yuan, that is, 1 000 yuan is equivalent to 10% of the contract value, but the deposit for you is 1 000 yuan.

However, it is precisely because of the leverage effect of margin trading that investors can use it to hedge risks, such as buying stocks and shorting futures contracts. The spot value of the stocks bought is 1 ten thousand yuan. Under the leverage of 10 times, only 1000 yuan is needed as the margin for shorting futures contracts at most. If the stock spot market gains more than 10% or loses money, such hedging transactions can still make money. For example, if the value of your spot stock is 1 1000 yuan, you should completely lose your margin 1000 yuan in the futures market, but the total amount of your investment is still 1 1000 yuan. Hedging can make up for your losses in the futures market. If the spot market price, on the other hand, if you have any losses in the spot market, you can make up for it through the futures market. This example is not good because you have hedged all your goals in the spot market. If your futures margin is lost, the spot market does not continue to rise, or you risk losing money or not making money. Because of the existence of time value, not making money is losing money. Therefore, most hedging transactions have a calculation of the ratio of spot and futures. Because of this calculation, you can't completely hedge the risk before you have a chance to make money.

In other words, to a certain extent, the more radical, the greater the risk, the greater the chance of making money and the greater the chance of losing money. Hedging can give you a stop-loss tool. In order to obtain long-term and stable futures profits in the futures market, futures investment customers need to learn more futures knowledge and various futures trading skills.