Many traders have just entered the market and are relatively unfamiliar with the concept of margin, and may not have been exposed to it in the previous process. Margin trading systemIt is a characteristic system of ** trading, tooOne of the biggest differences between trading and trading。The charm of trading is leveraged trading, which has the characteristics of high risk and high return, and is the desire of countless traders. If you want to come to the market and give it a try, but don't know what margin is yet? **What is the margin? How is the margin calculatedThen you must read this article thoroughly, otherwise you may suffer a big loss when trading!
The handling fee enjoys the discount of the large account levelMargin is flexible. How much discount can it be? Give it a tryJust get it.
Archimedes once said: Give me a fulcrum, and I can lift the whole earth.
Leverage refers to the use of leverageBorrowed funds for margin credit tradingto buy an asset. Leverage can be seen as a multiplier sign, amplifying our trading results, and margin is the "leverage" to leverage funds. Margin refers to the funds paid by the trader in accordance with the regulations, which are used for settlement and guarantee performance. Traders only need to pay a percentage of the total value of the contractPart of the funds is paid as a guarantee for the performance of the contract, you can proceedseveral times more than its fundsTransactions to buy and sell.
For example, if you want to buy 10,000 yuan in the market, you must pay 10,000 yuan in monetary funds. In the ** market, if the margin ratio is 20%, then the purchase of ** contracts worth 10,000 yuan only needs to pay 2,000 yuan of monetary funds, that is, it is used5x leverage(Leverage Ratio = 100% Margin Ratio).
LeverageSimultaneous amplification of benefits and risksIf the direction is done correctly, yesGet higher multipliers；But if the direction is wrong, it willGenerate losses of higher multipliers。When the margin is insufficient and the available funds are less than 0, it may be usedForced liquidation
*How much is the margin, the margin of different ** varieties, and even different contracts of the same ** variety are different. The amount of margin is determined by both the margin and the margin ratio
For example, the contract of soda ash ** is 20 tons, ** is 1930 yuan, and the contract value is 38600 yuan. Soda ashThe margin ratio is 18%.(For the convenience of calculation, the margin is for reference only, and the actual collection standard is subject to ** company.) Margin is flexible. Then you only need to occupy a margin of 6,948 yuan to **one hand worth 38,600 yuan of soda ash**. Assuming that the soda ash *** to 2000 yuan tons, the margin will also be increased to 7200 yuan.
When encountering 1The contract is close to the delivery date, 2When the cumulative rise and fall of several consecutive trading days reaches a certain level, 3When there is a continuous price limit, 4In the event of a national statutory long holiday、5When the contract position reaches a certain level, the exchange may adjust the margin ratio according to market conditions, which will also affect the amount of ** margin.
Understand what the margin is, what is the decision on the amount of margin, you must know how to calculate the margin when trading, so that you can estimate how many hands to open a position, how much to occupy, and how high the account risk is.
The formula for calculating margin is:
**Margin = contract *** trading unit * margin ratio * number of traded lots
We only need to know these parameters of the ** contract, substitute the parameters into the formula, and then we can calculate how much margin is needed. Or take soda ash ** as an example:
On February 1, 2024, the soda ash 2405 contract price is 1913 yuan tons, and the trading unit of soda ash ** is 20 tons of lotsThe margin ratio is 18%.。Then the margin required to trade 4 lots of soda ash** contracts can be calculated. 4 lots of soda ash ** margin = 1913 * 20 * 18% * 4 = 27547$2。(For the convenience of calculation, the margin is for reference only, and the actual collection standard is subject to ** company.) Margin is flexible.
1. Lower the capital threshold, so that more small and medium-sized traders can participate in trading.
2. Improve the utilization rate of funds.
3. Simultaneously amplify the benefits and risks.
Assuming that soda ash *** to 2000 yuan tons, the increase is 363%。At this time, the profit and loss is (2000-1930) * 20 * 1 = 1400 yuan, which is equivalent to obtaining a profit of 1400 yuan with a principal of 7200 yuan, and the floating profit and loss of the account is 1944%。
That's the beauty of margin leverageRisk is always proportional to benefitMargin leverage magnifies both gains and risks
If you have a strong risk tolerance and good risk control ability, and want to improve the utilization rate of funds, the margin ratio can be adjusted through negotiation with the company. （Contact your account manager by private message for immediate consultationOf course, the lower the margin ratio, the better, because the lower the margin, the greater the risk, and once the ** is reversed, the account will have less room to resist risk and maneuver. If you are not careful, you may be forced to close your position, and you may encounter extreme ** or even liquidation.
The above is the right for **What is the margin? **What is the margin? How is the margin calculatedAll of it. Do you have a general idea of the ** margin? If you have any questions, please interact in the comment area below!
The data in this article is only an example of the date of publication of the article, and is for reference only, and the actual charging standard is subject to ** company. The content of this article is only the introduction and sharing of trading-related knowledge, and does not constitute any recommendation and trading advice to traders. The futures market is risky, and you need to be cautious when entering the market.