Leverage allows individuals to control larger trading volumes. Traders will use this tool to expand their profits. It must be emphasized that when lever is used, the loss will also be amplified. Therefore, it is very important to understand that the leverage ratio needs to be controlled.

Leveraged trading: it is to invest several times the original amount with a small amount of money in order to obtain a return or loss that is several times the fluctuation of the investment target. Because the increase or decrease of margin (small funds) does not move according to the fluctuation ratio of the underlying assets, it is very risky.

The reason why futures need leveraged trading is that leveraged trading can enlarge the funds in the market, thus increasing the trading volume. The reason why the futures market dares to provide a larger financing ratio is because the daily average volatility of the futures market is very small, only about 1%, and the futures market can use less margin from investors to resist market fluctuations without its own risk.