1, risk of misjudgment
Misjudgment risk refers to the risk caused by the difference between the analysis and judgment of traders and the actual operation direction of futures market.
2, the risk of heavy trading
When traders actually open positions, they will face greater risks if they use excessive capital ratio or even Man Cang operations.
3. Liquidity risk
Contract value is a key factor that directly affects the liquidity of stock index futures market. Generally speaking, the higher the contract value, the worse the liquidity. If the contract value is too high, which exceeds the investment ability of most traders in the market, many participants will be excluded from the market; If the contract value is too low, it will inevitably increase the cost of hedging and affect the enthusiasm of traders to hedge with futures. Therefore, the contract value will affect its liquidity.
4. Risks of high-frequency trading
Traders conduct high-frequency trading, which directly leads to a substantial increase in trading volume and transaction amount, as well as a substantial increase in transaction fees, resulting in a substantial increase in transaction costs of traders. If the trader's futures investment is profitable, the rising transaction cost will greatly offset the profit of futures investment; If the trader loses money in futures investment, the transaction cost will rise, which will greatly increase the loss in futures investment.
5. Take unreasonable risks of profit and stop loss.
A reasonable stop-loss range is beneficial for traders to expand investment profits and control investment losses.
6. Risk of physical delivery
Individual traders should avoid the risk of physical delivery in futures investment, and corporate traders should actively deal with and properly handle the physical delivery process.
7. Risks of reverse operation
Whether it is a trader with strong financial strength or a trader with weak financial strength, it is the main principle to strive for profit and avoid risks when investing in futures.
8. Risk of extreme market conditions
Subject to the superposition of macro-economy, financial situation and major positive and negative factors in the relationship between supply and demand of trading varieties, the futures market usually has an extreme trend of continuous daily limit or continuous daily limit.