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Lever principle of silver futures
Leverage is the capital magnification realized by margin financing and securities lending mechanism. The greater the leverage, the greater the capital magnification and the higher the capital utilization rate. The smaller the leverage, the smaller the capital magnification and the lower the capital utilization ratio. In spot silver trading, the so-called leverage is the fund amplification ratio achieved by using the margin trading mechanism. The greater the leverage, the greater the capital magnification and the higher the capital utilization rate. The smaller the leverage, the smaller the capital magnification.