Leveraged trading, as its name implies, is to invest several times the original amount with a small amount of money in order to obtain gains or losses that are several times the fluctuation of the investment target. Because the increase or decrease of the margin does not move according to the fluctuation ratio of the underlying assets, the risk is great. Leveraged trading is also called virtual trading and deposit trading. That is, investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for trading, that is, to enlarge the trading funds of investors. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less money customers need to pay.

For example, if you invest 1 yuan to buy the underlying assets of 50 yuan, if the asset value increases from 1 yuan to 5 1 yuan, then your margin will become 1+ 1 = 2 yuan, which means that the 2% increase will become100 through leveraged trading.