In the futures market, there is a system called the margin system, which has the effect of being small and big, and making a big difference.
Simply put, you can buy 1,000 yuan of things for 100 yuan. It's a little hard to understand,
to make it clear, his rules are like this, for example, there is a soybean futures contract, 10 yuan per catty of soybeans, the quantity is 1000 catties, the value of this contract is 10*1000=10000 Yuan, it stands to reason that if you want to buy this contract, you need 10,000 yuan, and you only have 1,000 yuan in your body, but you clearly know that in a while, the price of soybeans will rise, which makes you unable to make money even if you see it. arrive.
Now that there is a margin system, you can do this, open an account with your 1,000 yuan in the futures market, and deposit your 1,000 yuan as a margin. If the margin ratio is 10%, the futures contract you want to buy 10000*10%=1000 Just bought it. After 3 days, the price of soybeans rises to 12 yuan/jin as you expected, and then
you sell your contract and earn 12-10 = 2 yuan per catty, for a total of 2 yuan * 1000 catties = 2000 yuan.
Hehe, in contrast, in the absence of a margin system, you may have to take out 10,000 yuan to buy the contract, and then earn 2 yuan * 1000 kg = 2,000 yuan, profit rate = 2000/10000 = 20%
using the margin method Your cost of 1000 yuan can also earn 2 yuan * 1000 catties = 2000 yuan,
your profit rate = 2000/1000 = 200
% Compared with the previous 20%, it is not the same. Ningwai, if you have 10,000 yuan, you can buy 10 copies of the same contract, and you can calculate how much you earned.
Of course, everything has advantages and disadvantages. Now let's see what happens if the price of soybeans does not rise as you expected, but the price falls.
Suppose now that soybeans are not rising to 12 yuan / jin, but falling to 9.5 yuan / jin,
let's calculate your loss, the loss per jin is 10-9.5=0.5 yuan, a total of 0.5*1000=500 yuan, now your margin account The remaining 1000-500=500 yuan, at this time your margin is less than the ratio of contract value * 10% (10000*10% = 1000), they will ask you to make up money until the ratio is reached, otherwise they will automatically liquidate your position for you , sell your contract.
At the unfortunate point, the soybean falls to 8 yuan/jin, your loss = (10-8) * 1000 jin = 2000 yuan, and your margin is not enough to lose.
Then you make up the lost money.
To sum up, with this system, a small amount of money can enter the market to make big transactions, which is conducive to the active market, but the risks are not small. This method is a bit like the deposit in the past. The deposit is not the ownership of the item taken, but the right to buy and sell for a certain period of time.