Quickly understand futures margin, and several core knowledge will help you get rich

　　When we buy futures,there is a certain amount of capital leverage in the middle.Therefore,in the process of trading,we have futures margin.That is to say,when we want to trade futures,we must first pay a part of the funds in order to meet our normal trading needs.And this part of the funds we paid is the futures margin we talked about.

　　As for the margin ratio we pay,this is regulated by the futures exchange.For each specific symbol,there will be each specific margin requirement.Most varieties are calculated at 3-8%.Different varieties have different margin ratios.Especially in the trading of varieties in the international market,most of the time,it is calculated at about 5%.

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　　Why learn about futures margin?

　　Related reading:What are futures?What types of futures are included?2021 Futures Comprehensive Explanation

　　Futures margin is a very important part of the futures trading process,if you don't know enough about futures margin.In the process of trading,there are likely to be many passive situations.For example,if our transaction fees are not sufficient,or our transaction fees are insufficient,we cannot open positions normally.

　　So why do we need to understand futures margin?In fact,when we understand this aspect,we should understand what kind of role it has.Only by understanding his role can we better understand him and understand why we should understand him.

　　First of all,in the first aspect,it can better reduce our transaction costs.You must know that when we trade futures,we have a certain amount of leverage.As we mentioned earlier,we only need to pay a deposit of about 3~8%.The remaining fee is the fee for our entire leverage.That is to say,we can do it very easily.We can better make the space we want and open up our profits through our way.Let me give you an example to make it very clear.For example,if there is no futures margin,if we need to trade a product with an amount of 1 million,we must take out 1 million of funds.However,with the futures margin and the leverage,we only need to take out 30,000 to 50,000 funds to successfully realize the transaction of our 1 million products.The remaining 970,000 to 950,000 is the leverage provided by the exchange.

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　　In the second aspect,the futures margin can guarantee the normal performance of our entire contract.If there is no margin,the entire transaction will have a very large loss,and there will also be a very large risk.It's as if you go to buy 1 million products,but you don't pay a penny,once there is a loss.Who is he paying for?Is it possible for you to escape the bill?Maybe you won't evade the order,but the market is so big,there will always be someone who will choose to evade the order.Who will make up for these losses?Therefore,when conducting futures trading,the margin is very important,and the margin can ensure the normal performance of the contract.

　　In the third aspect,the margin can better control the risk of the market.For example,when the entire market is very active,the margin ratio of the market can be appropriately increased.Then the entire market can run fast,at least not allowing some overly extreme investors to invest back and forth in the market crazily.This will cause their risks to continue to increase.In this way,their development can be limited as much as possible.To be precise,it can reduce their impulsive desires.

　　If the market is relatively sluggish,it is appropriate to relax the margin requirements.It can also better stimulate the market.For example,when the volatility of the entire market is not particularly large,and the leverage of the margin is continuously lowered at this time,more and more people can meet the needs of entering the market.Therefore,more and more people will trade in the market.In this way,the transaction balance of the entire market can be well ensured.

　　It can help the entire market to maintain its stability better.As long as the market can be more stable,there will be more participants in a market.

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　　How is futures margin generally charged?

　　Futures margin is generally divided into two parts,the first part is the standard formulated by the exchange.This standard is the same in all futures companies,and this standard is also a preliminary standard.The second part is the space for futures companies to float.

　　Why do futures companies have a space for upside?In fact,futures companies also have their own ideas.To know that futures companies face the majority of investors,so that they can better control their risks.So they will calculate their entire margin and their entire leverage against each other,and then increase their margin appropriately.They can better ensure their risk controllability,and their risk will be lower.Be aware that the lower the margin,the higher the leverage of the transaction,and the higher the risk.

　　For the vast majority of futures companies,they are unable to take such a risk.From another point of view,they are also very worried.If there is an unexpected situation,will they have a special situation?

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　　Margin itself is a double-edged sword,if used very well.Then the margin can make you a huge profit,and even allow you to quickly expand your space.If you don't use it well,the risk brought by the margin may also cause you to fall into the abyss.

　　Therefore,in the process of facing margin trading,we should seriously face our trading situation.Be able to get familiar with our trading behavior,and don't go further and further on the wrong road.

　　And don't pursue low-margin transactions too much.The more investors who pursue low-margin transactions,the easier it is to forget risk control.At the same time,various accidents may occur,and transactions need to be very cautious.I hope that every futures investor should take good care of our risks when investing in futures.