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How big is the leverage of futures trading?
Futures trading is an enduring topic, but when it comes to investment trading, stocks, funds, futures and gold are all products that cannot be ignored. In the futures trading market, the higher the leverage of futures, the greater the risk, and high-frequency trading will also increase the risk. Investors should not think that the higher the leverage, the better, because risk and income are relative, and high income means high risk.

How big is the leverage of futures trading?

Leverage multiple calculation formula = 100%/ margin ratio of the commodity futures.

Most domestic futures trading is 10 times leverage, but the leverage ratio is different for different trading varieties. Leverage refers to trading a few times the original investment with a small amount of money in order to obtain a multiple rate of return. Leverage ratio is calculated according to the margin ratio, so it will also change with the margin ratio.

Domestic futures are leveraged several times, and conventional trading is about ten times. In other words, the leverage of domestic futures is about 10 times, and some futures products are less than 10 times. Different varieties have different leverage ratios. In the trading market, stocks can choose not to be leveraged, while futures cannot be without leverage.

Futures is a margin trading system, that is to say, futures trading is a leveraged trading, which is its trading characteristics, and futures trading must use leverage. As a futures variety, the fluctuation of commodities is actually relatively small, because in order to facilitate investors' trading, the margin is used for trading. The use of futures trading control lever is mainly to control one's own position and minimize the proportion of one's position.

Futures traders basically know that futures are leveraged transactions and margin transactions. Compared with other transactions, futures investors can make bigger transactions with a small amount of funds. At the same time, investors also understand that the level of leverage also determines the risks and benefits, and the high benefits brought by high leverage.

Generally speaking, the leverage of domestic commodity futures is fixed, and the maximum leverage is about 10 times. Therefore, doing futures is not to say that the bigger the better, but the more stable the better. It is very necessary for investors to choose good futures products.