How investors avoid the risk of futures funding business This article tells you the answer

How investors avoid the risk of futures funding business This article tells you the answer.

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With the continuous rise of stock funding, futures funding has also continued to develop. In general, there are three parties in the futures funding business: First, investors with insufficient funds have financing needs due to personal risk preferences or the threshold of 500,000 yuan for stock index futures; Measures such as controlling accounts, restricting transactions, and forcibly closing positions reduce risks to a minimum and can obtain high returns from futures funding and have profit needs. Futures funding is mostly a short-term operation of fast-in and fast-out, both of which have led to a surge in fee income, and they are also happy to see it and even participate in it.

It is said that the risk of futures funding is relatively large, so what are the risks? How can investors avoid it?

Futures funding business

The first is the leverage risk. We know that futures are traded on margin leverage. Although there are differences in various varieties and contracts, most futures trading varieties have ten times the leverage. That is to say, 10,000 yuan can do 100,000 transactions. Futures funding can also achieve leverage of 1: 5 or even 1:10, that is, with 10,000 yuan, the funding company can borrow another 50,000 or 100,000. What is this concept? For example, the value of each lot of a futures contract is 10,000 yuan, because 10 times the leverage of the futures itself, as long as the 1,000 yuan margin can be done, and now through 5 times the allocation, investors can use less than 200 yuan can Trading a contract of 10,000 yuan; however, sometimes the futures price also fluctuates greatly. According to the 5% limit system, one stoppage can lose 500 yuan, and the possibility of instant liquidation is extremely great.

Futures funding business

Of course, the risks and returns are equal, and if you get the right direction, you will make a lot of money. The main area of ​​futures funding is still in stock index futures. For most investors, this risk cannot be tolerated, because once the investor's own funds lose 70%, the funding company will force the liquidation of the position, and all losses will be borne by the investor, and the interest cost will also be a penny. can not be less. The risk reduction method is also arranged by the funding company, which is generally short-term operation, not overnight or noon.

The second is the risk of capital security. Futures funding is the same as stock funding. Investors remit margin into the account designated by the funding company, and then they provide trading accounts and passwords to investors at the same time as funding. Because the financing company does not have a financial business license, nor does it belong to a financial institution, there is no capital supervision. Usually, investors transfer personal accounts. Moreover, at the time of trading, account information and passwords are held by the funding company. Investors only enjoy the freedom of trading under the "Funding Entrustment Agreement" and have no independent control over funds. In such a model, once the fund-raising company rolls out, investors have nothing to do. Therefore, in fund-raising activities, investors' deposits are risky. The way to avoid risks is to choose a relatively strong and reputable funding company. Don't pay too much attention to the interest and handling fee discounts. If the futures brokerage company also has this business, the security may be higher.