The first is to understand the contract or standard contract, which is actually similar to a standard, such as water heaters, which can only be sold in stores if they meet the national standards.
The standard contract of this futures can also be understood in this way. Only wheat, copper, coffee and eggs that meet certain standards can be used as trading objects.
As long as it meets the standards, the same goods from different sources can be sold as delivery goods.
In addition to leveraged trading, the vernacular is that 1 yuan can lend you 9 yuan at most, and you can participate in trading with 9 yuan money that does not belong to you.
Of course, you have to bear the consequences of trading 9 yuan money. You know, you only have 1 yuan.
You can only use 1 yuan to participate in the transaction, or you can choose 1- 10 yuan to participate in the transaction. The part that exceeds 1 yuan is leverage, which is called adding leverage.
Actually, it's borrowing money. The higher the leverage, the more you borrow.
Therefore, the inherent risk of the futures trading mechanism is great, and you need to have good self-control.