Why is futures easy to go bankrupt?
Futures is a high-risk and high-return investment behavior, because futures are margin transactions, generally with 5-20 times leverage, and the risk of speculating in futures is greater than that of speculating in stocks.
Different kinds of futures trading prices are different, and the margin required for each transaction is also different. Generally speaking, the less margin, the greater the risk, and the more margin, the smaller the risk.
Futures are prone to bankruptcy because they are not skilled in investing. If they like to make big bets with small bets, they will lose money more easily. However, if they lose money and want to earn it back, they will get deeper and deeper, resulting in more money and ruin.
Is the futures risk big?
Futures are very risky, because futures are leveraged transactions, small and wide, and are high-risk investment behaviors. Ordinary retail investors trade futures, that is, earn the difference. Because only price fluctuation will produce profit and loss, and there will be the risk of price fluctuation. The price fluctuation of futures varieties is sometimes very violent, and the corresponding risks are also very high.
Therefore, when investing, we should pay attention to controlling its risks. Generally speaking, it is recommended to operate with large funds and small positions and set a stop loss point. Futures are risky, so investment must be cautious.
I hope the above content can help everyone!