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What is leveraged trading? You'd better explain in detail with examples. Thank you.
Leveraged trading is the use of small funds to invest several times the original amount of funds. In order to expect multiple gains or losses relative to the fluctuation of the investment target. Because the increase or decrease of the margin (this small fund) does not change according to the fluctuation ratio of the underlying assets, it is very risky.

Example: If A has a principal of 654.38+10,000 yuan (also called deposit in real transactions, which needs to be deposited into deposit receiving account in advance), an additional 400,000 yuan will be added by other means, with total assets of 500,000 yuan. At this time, we participated in a transaction in the financial market, assuming that it rose by 20%. If there is no leverage, the income = 65438+ million × 20% = 20,000. At this time, through leverage, the income = 50×20% = 65438+ 10,000, and the principal of 65438+ 10,000 is doubled! But don't worry, if it falls by 20%, the loss will be 654.38+million, and the principal will all evaporate, which is a typical representative of high risk and high income. When the stocks or other funds you trade fluctuate, the loss rate can be as high as 100%. Therefore, not everyone is suitable for this high-risk leveraged transaction, but it is precisely because of the huge interest temptation of buying and selling empty-handed white wolves that many people are attracted.

However, the advantage of leveraged trading is that it can trade funds continuously for 24 hours, thus avoiding the risks caused by interval gaps. Although there is also the risk of short jump, it also gives some people time to react in time, thus avoiding it through preset and short grab, which brings great convenience to some people who are used to sideline and part-time jobs.

High leverage has also brought a lot of convenience to some high funds, and cooperation can be established flexibly. Under the premise of strict risk requirements and in the case of unstable profits or profits, we can continue to increase high-leverage cooperation, which provides great possibilities for realizing profiteering.

The threshold for participating in this leveraged transaction is also relatively low. You can use the internet and your own information to open an account, which is very simple. The success or failure of this transaction lies not in the amount involved, but in their own operational level. For example, the investment of some small funds can also grow rapidly, becoming another stage for some working-class and small capitalists to get rich.

The opportunistic method is to buy in time when hearing good news and sell in time when confirming good news. The wait-and-see time should not be too long. When the money you buy is profitable again, when you want to continue to add positions, remember that the greater the investment, the greater the risk, so as to rise steadily. Don't be too eager for quick success, lest you suffer.

There are many other terms and different economic benefits in leveraged trading, but the most important thing is that getting twice the result with half the effort in leveraged trading can enable investors to get relatively more return funds in a short time.