The first is to understand the contract or standard contract, which is actually similar to a standard, such as water heaters, which can only be sold in stores if they meet the national standards. The standard contract of this futures can also be understood in this way. Only wheat, copper, coffee and eggs that meet certain standards can be used as trading objects. As long as it meets the standards, the same goods from different sources can be sold as delivery goods.

In addition to leveraged trading, the vernacular is that 1 yuan can lend you 9 yuan at most, and you can participate in trading with 9 yuan money that does not belong to you. Of course, you have to bear the consequences of trading 9 yuan money. You know, you only have 1 yuan.

You can only use 1 yuan to participate in the transaction, or you can choose 1- 10 yuan to participate in the transaction. The part that exceeds 1 yuan is leverage, which is called adding leverage. Actually, it's borrowing money. The higher the leverage, the more you borrow. Therefore, the inherent risk of the futures trading mechanism is great, and you need to have good self-control.

The application of futures leverage;

Control the proportion of positions.

The main reference factors are the scale of funds and the adjustment ratio of market bands. Basically, the opening ratio does not exceed 30%, and the limit level is 50%.

2. Set stop loss and take profit targets.

The main reference factors are the scale of funds and the degree of risk preference. The stop-loss and profit-taking targets of different operating modes are different, generally at 20% and 50%.

3. Avoid "getting rich" and pursue "a long stream of water".

The unity and practice of this understanding is one of the most important foundations in the process of pursuing high leverage in the futures market. Mental balance refers to maintaining an objective, calm and principled rational state whether analyzing the market or trading operations, whether in the case of profit or floating loss. Only in this way can we really enjoy the benefits of high leverage in the ups and downs of the futures market and avoid falling into various market traps due to psychological imbalance.