- The two-way nature of futures trading: The biggest difference between futures trading and the stock market is that futures can be traded in both directions, and futures can be bought or sold short. When prices rise, you can buy low and sell high, and when prices fall, you can sell high and make up for low. Long can make money, and short can make money, so there is no bear market in futures. (In a bear market, the stock market will be depressed, but the futures market will remain prosperous and opportunities will remain)
2.The leverage of futures trading: the principle of leverage is where the charm of futures investment lies. There is no need to pay all funds for transactions in the futures market. At present, domestic futures transactions only need to pay 5% margin to obtain future trading rights. Due to the use of margin, the original market price was enlarged by more than ten times. Let’s assume that the copper price limit is closed on a certain day (the daily limit in futures is only 3% of the previous trading day), and the operation is correct. Our capital profit rate is as large as 60% (3%÷5%), which is 6% of the stock market’s daily limit. Times. (You can make money if you have a chance)
3.“T+0” trading opportunities are doubled: Futures is a “T+0” transaction, which makes your capital application to the extreme. After you grasp the trend, you can trade at any time and close your position at any time. (Convenient access can increase the security of investment)
4.Futures is a zero-sum market but greater than a negative market: Futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction costs of in and out of funds and withdrawal, the total amount of funds in the futures market remains unchanged, and the profit of market participants comes from the loss of another trader. When the stock market enters a bear market, market prices have shrunk sharply. In addition to the meager dividends, the state and companies have no short-selling mechanism to absorb funds. The total amount of funds in the stock market will show a negative growth for a period of time, and the total profit will be less than the loss. (Zero is always greater than a negative number)
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