How much leverage is appropriate for domestic commodity futures? Different markets, different varieties, and even different contracts will have different margin requirements, but we can use the same leverage to operate. Leverage = trading contract value / own capital equity. For example, assume that Dalian Douyi’s margin is 10%, the futures price is 4,900, and one lot is 10 tons. Then the contract value of Dalian Douyi is: 4900*10=49000. If the self-owned funds are only 4900, 49000/4900=10, the operating leverage is 10 times. If you have 10,000 self-owned funds, 49,000/10,000 = operating leverage is times. So, as a trader, how much leverage should you use? Is it 10 times the bar? Or double the bar? Or something else? This cannot be determined in a general way and requires reference to the specific techniques adopted by individuals. Assuming that the retracement level of my technique is generally 20% to 40%, then my leverage level should be controlled between 3 times and 4 times the leverage. If the leverage is too large, it will be unbearable; if the leverage is too small, it will be too wasteful. What about other methods? How much leverage should be used? The following factors are mainly considered: 1. Drawdown level 2. Fund management 3. Rules and regulations 1 and 2. Different techniques have their own characteristics. Let’s talk about the third one. In the domestic market, the margin is adjustable and adjusted relatively frequently. During the New Year and holidays, the margin will be significantly increased, and some varieties will be nearly doubled to reach the 20% margin requirement. In normal times, different futures companies will also set their own margin requirements (generally higher than exchange requirements) based on their own needs. This is something you must consider when choosing the leverage criteria you use. For example, if I want to hold a position during the holidays, then my own funds cannot be less than 20% of the value of the trading contract during the entire transaction.