What are the disadvantages of futures?

1, the margin system, customers are easy to explode positions, and there is a risk of being forced to close positions. Exchanges and futures brokerage companies have to settle accounts every trading day. When the investor's margin is insufficient and below the specified proportion, the futures company will forcibly close the position. Sometimes, if the market is extreme, there will even be short positions, that is, all the funds in the account are lost, and even the futures company needs to pay the part whose losses exceed the account margin.

2. Delivery risk. Generally speaking, speculation in futures is not to get physical objects, but to arbitrage from them. Ordinary investors do not want to buy more soybeans in a few months, nor do they want to sell copper in a few months. If the contract is held until the delivery date, investors need to raise enough funds or physical objects for delivery. Therefore, investors should pay attention to the contract term, close their positions in time and avoid delivery risks.

Lever is a double-edged sword. Leverage is actually the product of the margin system. The stock market is the principal purchase of 1: 1, but futures are leverage. Because of the blessing of leverage, futures make good money when they make money, and they also lose badly when they lose money. Therefore, leverage can not be classified as advantages and disadvantages, but a double-edged sword.