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What is the leverage principle in crude oil investment?

spot crude oil trading is a kind of contract trading based on the principle of capital leverage. Leverage is the multiple of capital amplification achieved by margin trading mechanism. The greater the leverage, the greater the multiple of capital amplification and the higher the utilization rate of funds. The smaller the leverage, the smaller the multiple of capital amplification, and the relative decrease of capital utilization rate. In spot crude oil trading, the so-called leverage is the multiple of capital amplification achieved by margin trading mechanism. The greater the leverage, the greater the multiple of capital amplification, and the higher the capital utilization rate. The smaller the leverage, the smaller the multiple of capital amplification.

leverage is the multiple of capital amplification achieved by margin trading mechanism. The greater the leverage, the greater the multiple of capital amplification, and the higher the capital utilization rate. The smaller the leverage, the smaller the multiple of capital amplification and the lower the capital utilization ratio

In spot crude oil trading, the so-called leverage is the multiple of capital amplification achieved by margin trading mechanism. The greater the leverage, the greater the multiple of capital amplification and the higher the capital utilization ratio. The smaller the leverage, the smaller the multiple of capital amplification.