How to understand futures?
Futures is a two-way operation, you can make more short positions, you need a strong operating system and message analysis, and retail investors can also participate in futures investment. Once there is no complete system operation, retail investors are speculative. Futures, commonly known as futures contracts, refer to standardized contracts formulated by futures exchanges and agreed to deliver a certain number of subject matter at a specific time and place. Investors can invest or speculate in futures. Improper speculation in futures, such as short selling stocks, will lead to financial market turmoil. One of the biggest differences between two-way futures trading and stock market is that futures can be traded in two directions, and futures can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and make up low. Going long can make money, and shorting can also make money, so there is no bear market in futures. In a bear market, the stock market will be suppressed, while the futures market will remain unchanged and opportunities will still exist. ) low cost. Futures trading countries do not have stamp duty and other taxes, and the only cost is the transaction fee. The procedures of the three domestic exchanges are about two ten thousandths or three ten thousandths, plus the additional fees of brokers, and the unilateral handling fee is less than one thousandth of the transaction amount. Leverage The principle of leverage is the charm of futures investment. Futures market transactions do not need to pay all the funds, and domestic futures transactions only need to pay 5% margin to obtain future trading rights. Due to the use of margin, the original market has been enlarged ten times. Assuming that the daily limit of copper price closes on a certain day (the daily limit in futures is only 3% of the last trading day), the operation is correct. The return on capital is as high as 60%(3%÷5%), which is six times the daily limit of the stock market. Futures above the negative market is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction costs of capital entry and exit, the total amount of funds in the futures market remains unchanged, and the profits of market participants come from the losses of another trader. The stock market has entered a bear market, the market price has shrunk dramatically, the dividends are meager, the state and enterprises absorb funds, and there is no short-selling mechanism. The total amount of funds in the stock market will show negative growth for a period of time, and the total profit is less than the loss.