What is the purpose of futures speculators? Many people should aim at obtaining benefits. There is a saying that idea determines practice, and practice determines success or failure. The same is true of the futures market, but anyone who can walk in the market for a long time must have a very high understanding and excellent mentality.
Some people may ask, is it risky to speculate in futures? Of course, speculation in futures is risky and adopts the principle of leverage, which bears both high risks and high returns. Therefore, it is not a simple thing to open the door to wealth by speculating in futures, but it is definitely not an unrealistic fantasy.
Although it goes without saying that speculating in futures is a risky investment, the risk itself is not uncontrollable. Soros once said: There is no risk in futures, and traders themselves have risks. This sentence directly points out that the risk of speculating in futures is actually amplified by our traders themselves, so since we can prevent big risks, there must be ways to reduce them.
Is it risky to speculate in futures? The risk of speculating futures mainly comes from the leverage amplification of the margin mechanism. Take the deposit of 10% as an example. When you operate in Man Cang, the risk is magnified tenfold. Therefore, the leverage amplification of futures can actually be adjusted according to the proportion of your positions. According to the margin ratio of the exchange, investors can actually enlarge the leverage by one to twenty times, and the specific amount is entirely determined by the traders themselves.
If traders have strong risk-taking ability and are willing to take high risks to obtain greater returns, the leverage ratio can be moderately increased. If the trader's risk-taking ability is weak and stable, then the risk of light warehouse operation will naturally be small.
In addition, in addition to controlling the risk of position adjustment, we can effectively control the risk by selecting multi-variety and multi-cycle trading, complementing trading strategies, or setting a single maximum withdrawal ratio.