Commodity futures are leveraged transactions, and the utilization rate of funds is greatly improved, which is also the reason why investors can be small and wide. However, it is necessary to do a good job in risk management in order to achieve stable and sustained profits in futures accounts.
In fact, in ancient China, a famous person used this method very early and achieved good results. We should also pay attention to the success of futures trading. At least, it is a small loss and a big profit, and the probability of making a big profit is high. This is a matter of course. After futures account, if the probability of losing large bills is too high, it is wise not to take risks. Commodity futures are margin trading, and futures contracts can be bought and sold with small funds. The profit and loss are calculated according to the actual value of the contract. In the real business world, we usually beat the small by the big. Almost every business knows the truth of "small profits but quick turnover". What are the profits of all goods and businesses? On average, it is 10%-20% profit, and over 50% is considered as profiteering.
But futures are different. Futures have high risks and high returns, so it is necessary to make a big market and make a small stop loss. Of course, retail investors lose a lot in futures speculation, but it is different from gambling, but the game can win and it can be a win-win situation! "Bo" is a stop loss, just like watching the market go bad. It is better to break even or lose less, but this does not happen often.
Domestic futures accounts should be handled in advance, and any transaction will not generate any fees. Investors in futures accounts should understand that in the process of futures trading, the less stops appear, the lower your transaction cost. The better your technology and skills are, the greater your profits will be. This is the true meaning of "small and broad"!
Solve the above problems and truly realize that "the essence of futures trading is small and broad", then you can think that it is an introduction to speculation, at least you won't go in the wrong direction and lose yourself.