How big is the risk of futures?
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When it comes to futures investment, many investors "turn pale" and think that the market risks are huge, and they will lose their money if they don't make it right. So, how big is the risk of futures?
One of the biggest differences between futures and stocks is the two-way trading mechanism of the futures market, which can only be achieved through reciprocal transactions between buyers and sellers. If the commission is not considered, your profit is the loss of others, and your loss is the profit of others. Therefore, the futures market is a "zero sum game" market.
But the stock market is not a "zero sum game" market, because when the stock rises, although the buyer is profitable, the seller will not lose because of the rise of the stock; On the contrary, when the stock falls, although the buyer is losing money, the seller will not make a profit due to the decline of the stock.
Since the futures market is a "zero sum game", why do we always hear about the painful experience of how much a certain investor has lost in the futures market, but it is hard to hear how much a certain person has earned in the futures market? Is the media misleading or does the market itself not have a "zero sum game"?
Only the buyer of stock bears the risk, while the futures bear the risk of price fluctuation as long as they are traded, regardless of whether they are long or short. This is determined by the use of margin trading in futures. In futures trading, investors only need to pay 5% - 10% of the contract value to trade, which is equivalent to 20-10 times the leverage ratio. The high risk of the futures market is reflected in the leverage effect.
Futures leverage is the key to leveraging wealth. If properly used, our wealth can appreciate rapidly. Take the real estate market that everyone pays attention to. For a house with a total price of 1 million yuan, a down payment of 20% is equivalent to a leverage ratio of 5 times. When the house price rises, the five times leverage ratio will make the market value of your house rapidly rise, because the appreciation of the house price is not based on your down payment of 200000 yuan, but on the total price of the house.
Affected by inflation expectations, commodity futures rebounded significantly. It is said that some investors in Jiangsu and Zhejiang provinces are hoarding copper, crude oil, steel and other commodities, waiting for the price to rise. If 1000 tons of copper are stockpiled, it will cost 55 million yuan at the rate of 55000 per ton. If futures margin trading is used, only 2.75 million yuan will be needed to reach the goal of stockpiling, and a large amount of money will be saved. (Shareholders College: http://www.58188.com )
How to use leverage reasonably is one of the key factors that determine the final profit and loss of investors. For example, you can use 100000 yuan of cash, which can be expanded to 2 million yuan at most in the futures market. How to use leverage? The final investment result will be determined by whether it is a full position transaction that exceeds your economic endurance or a moderate amplification within the acceptable risk range.
The above is a brief introduction to "how big is the risk of the futures market", and I hope it can help you. Futures trading can make life rich and property shrink. It is important to control risks and keep the principal when trading. To do a good job in futures trading, we must start from opening futures accounts.
Different futures companies open accounts give different futures commission fees, some as high as several times of the exchange, and some only add 1 cent on the basis of the futures exchange!
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