Is gold futures leverage a double-edged sword? How to treat gold futures leverage trading?
In gold, silver, futures, foreign exchange and other financial markets, it is not uncommon to have leverage. As we all know, futures, gold is a high-risk investment tools, often need to allocate leverage to obtain higher returns, which is called high-risk, high-yield. Generally speaking, the domestic futures market is more than 10 times leverage, while in the international foreign exchange market, capital leverage can reach hundreds of times. Some people think that leverage means risk and instability. How can we correctly view the double-edged sword effect of futures leverage?
1. Lever is a "double-edged sword"
Investors fear leverage because the risks it brings are also leveraged.
"After the invention of the automobile, the death rate of traffic accidents has increased significantly, even close to the death rate of cancer patients and suicide, but this can not question the automobile or highway, because although it will cause casualties, it is more convenient for people to travel." Analysts make an analogy.
Leverage, like automobiles and highways, can bring both benefits and risks. However, judging from various global market assessments, the overall advantages outweigh the disadvantages. We can see that there are more and more capital leverage businesses around the world. From this point of view, people's money also means leverage, which is also a symbol of credit.
2. Leverage is not a "monster"
"Compared with the spot trading without leverage, leverage is equivalent to doubling the profit and loss results and multiplying the profit and loss results." Analyst Perry said.
Leverage can also be called "small and broad". If the proportion is appropriate and the risk control measures are in place, leverage can save the operating costs of enterprises, expand the scale of operation, extend the scope of industrial chain cooperation, and promote the national economy. However, if the leverage is too large and the risk control measures are not in place, excessive leverage will bring potential risks to the operation of enterprises and the national economy.
In terms of leverage, what are the differences between stocks and futures? Cai Luoyi said that the leverage ratio of futures trading is relatively larger. Take stock index futures as an example. If futures companies charge 15% margin, the leverage ratio of stock index futures will be about 7 times. That is, investors can trade their own margin 7 times the amount of the scale of the transaction, and fully bear the profit and loss of the scale of the transaction.
Pei Rui said that from the perspective of leverage, the essence of leverage in futures and securities markets is the same, but from the current point of view, although the securities market launched margin trading business, the leverage ratio is still small; Although the leverage ratio of the futures market is higher than that of the securities market, the leverage ratio is still small compared with similar foreign markets. In addition to the strict risk control measures and long-term investor education in the domestic futures market, generally speaking, the leverage ratio of the domestic securities market and the futures market is more appropriate.
3. Leverage is the charm of futures
"Leverage is one of the characteristics of futures investment and the charm of futures trading." Jinfeng gold and silver believes that the trading leverage of the futures market is determined by its trading target and contract setting, and the futures market is mainly set up for enterprises to avoid risks. Investors' participation is mainly to judge the future commodity price expectation, so it is reasonable to use leverage.
Further speaking, margin trading in the stock market does not cover all stocks. In addition, it has cost and belongs to lending. It is an innovative business. Therefore, extreme market will appear when the market fluctuates violently. The risk aversion function of stock index futures can make up for the deficiency and improve the investment portfolio allocation.