Its trading scope covers many kinds: foreign exchange, stocks, bonds and financial derivatives.
Domestic leveraged funds belong to the leveraged share of graded funds, that is, the aggressive share.
Share leverage is the leverage ratio at the time of fund issuance.
That is, the ratio of the sum of A shares and B shares to B shares.
The specific formula is: share leverage = (A share +B share) /B share.
Advantages of leveraged funds
1. The main purpose of leveraged funds is to amplify the expected return effect and help investors get more expected return opportunities with less funds.
2. Leveraged funds in China are mainly embodied in graded funds. On the one hand, the leverage effect can guarantee the safety of the expected return of some funds, on the other hand, it can achieve the purpose of improving the expected return, and at the same time meet the needs of investors for safety and expected return.
3. Due to leverage amplification, investors can participate in a larger trading market with less capital, which lowers some trading thresholds and enables investors with less capital to participate.
However, it should be noted that while the expected return is enlarged, the risk is also enlarged simultaneously.