The first lesson in trading treasury bond futures: keep the risk awareness in mind! The potential profit and loss range of a single day for Treasury bond futures is relatively large, and the price limit for Treasury bond futures is 4%, which means that if an extreme situation occurs in Treasury bond futures, investors will lose all trading margin

, that is, 4 %*25 times leverage = 100%. If you operate with a full position, in extreme cases you may be liquidated within one day.

Never speculate in stocks

Once the government bond futures market moves in the direction you judge,

the profits will be considerable. The leverage ratio of Treasury bond futures is about 25 times. Compared with the margin invested, the day-to-day profits and losses are also considerable. If the price of Treasury bond futures fluctuates by 0.4%, it will bring about a profit or loss equivalent to 10% of the margin invested.

However, investors must not speculate in treasury bond futures as stocks: in the stock market, after buying stocks, investors generally do not need to keep an eye on the market at all times, and can even hold them for a long time. However, investors need to have enough time to keep an eye on the market when participating in Treasury bond futures trading.

Investors must not think that they can make big money by operating a full position in Treasury bond futures, but ignore the risks of operating a full position.

Understand your position

Before entering the Treasury bond futures market, investors should first understand the pattern of the Treasury bond futures market and their own positioning in participating in Treasury bond futures trading.

There are many potential participants in Treasury futures, but different groups have completely different risk preferences and trading models based on them. Let’s first take a look at the risk preferences of different participants.

Institutions represented by commercial banks and insurance (guaranteed insurance) companies are the most urgent demanders for treasury bond futures. They are also investors with the lowest risk appetite. The core function of their use of treasury bond futures is to manage Interest rate risk to cover the interest rate risk exposure of its own positions. Theoretically, the risk appetite of bank financial products and self-operated securities companies is also lower, but it is slightly higher than that of banks and insurance companies.

This type of group, represented by the collective asset management accounts of securities companies and private equity funds, has a higher risk appetite, and they are also important active participants in the early stages of the market.

Individual investors’ participation in treasury bond futures is undoubtedly a high-risk preference, because in terms of operational motivation, individual investors basically do not manage interest rate risks and conduct hedging transactions, but engage in speculative transactions. Master's mode.