A few days ago, everyone was discussing an Internet celebrity V who opened a leverage of 47 million. After the liquidation, some people said that he fell from a high platform and committed suicide. However, the big V later released a video explanation, saying that he did not think too hard. Jump off the building, just go to the Taoist temple to pray for peace. So, what exactly is this leverage? What are the consequences of detonating the lever? Today, let’s give you some popular science about what “leverage” is.
所谓杠杆，其实就是找证券公司借钱炒股。你可以选择看看股票能不能涨，然后借钱买；或者预判一只股票会跌，就向证券公司借相应数量的股票卖出去。举个例子，假如你手上有 100 万人民币用来投资股票，股票涨个 10%，你大概就能赚 10 万。但是如果你能从证券公司那里借来相同金额的钱，买同样的股票，只要股票涨幅大于 10%，你就能小赚一笔。注意哦，这种方式能帮你放大赚钱的机会。
If the rules allow it, the maximum you can borrow in cash is 120%. In total, if you buy it with 1 million in cash, it is actually equivalent to using 2.2 million in cash. When the stock rises 10%, you can earn 220,000. So, this approach allows you to get higher returns, but it also increases the risk.
The result of leverage operation is to help investors make huge profits quickly, but it also brings greater risk of loss. If leverage is used properly, it can indeed bring more income; but if it is wrong, it may lead to serious losses, or even a loss of all principal!
Back to the currency circle, leverage is even worse than the stock market!
Because in the currency circle, it can generally be opened to 100 times, and some can be opened to 125 times. Some pheasant platforms even launch 1,000 times gimmicks!
If you are a high-power and high-frequency player, you may be able to do 10,000 dollars a day or more with only 100 dollars, depending on your leverage and position size!
This kind of risk is very big. Just like a week before ETF was launched, the market liquidation amount reached 2 billion➕ for many consecutive days, and there was even a liquidation of 5 billion in one day! During this period, the cumulative number of liquidations reached less than 1 million!
This is very terrifying. Tens of billions were kidnapped by the main force in less than half a month, and hundreds of thousands of people became cannon fodder!
I believe that around half a month from the end of December to the beginning of January, many players with high contract multiples, high frequency and high positions have experienced this feeling of death!
But in the end, Brother Sao still advises you to establish correct investment and trading concepts and form your own trading logic! Don't blindly follow the trend and open high leverage, large positions, and high-frequency stud operations, otherwise the final outcome may be a misfortune for yourself and your family!
