The leverage ratio of the contract is equal to the ratio of the percentage change of the option price to the percentage change of the underlying asset price, that is, the underlying asset price changes by one percentage point and the option price changes by g (leverage multiple) percentage points. Generally speaking, the leverage of 50ETF options is about 20 times, but in fact, if the time value and contractual nature are added, the leverage can exceed 100 times. Theoretically, it can be said that the dual value of leverage is infinitely high.

What should we pay attention to in stock option leveraged trading?

In the option market, "the strong will always be strong and the weak will always be weak". If we want to gain benefits on this basis, we must accurately judge the strength. When a strong contract is weakened, it will become more serious. Therefore, you must be cautious about strong contracts that have been continuously pulled up. In option trading, it is either profit or loss. There are many factors that will cause losses, and technology is not in place. It may be that the risk control is not done well and the stop loss point is not set. Of course, it may also be that investors are in a bad mood.

Options have unique high leverage, and the risk is limited compared with stocks. The leverage of 50ETF options is dynamic, and the values we see only represent the leverage level in this short period of time, which does not mean that the leverage will always be so much. Finally, it should be noted that whether it is a good market or a headwind market, there are different corresponding strategies to minimize losses.