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Why is futures highly leveraged?
First of all, you should understand that futures trading is a contract, not a spot, so in this case, there is such a margin system, that is, you only need about 10% of the funds to buy such a contract. Futures trading is an organized trading method developed on the basis of spot trading, by buying and selling standardized futures contracts on futures exchanges. If people who invest in futures are classified, they can be roughly divided into two categories-hedgers and speculators. Hedging means spot hedging. Buying when bullish (that is, bulls) and selling when bearish (that is, bears) simply means buying (or selling) goods in the spot market and selling (or buying) the same kind of goods in the futures market at the same time, so that no matter how the price of the spot supply market fluctuates, it can finally achieve the result of losing money in one market and making profits in another market, and the loss amount is roughly equal to the profit amount, thus achieving the purpose of avoiding risks. Therefore, from the perspective of the purchase contract, there is no harm in this enlarged leverage principle, and he also has necessary personal views. As for speculators, it means little to them.