Core Points - Leverage trading amplifies transaction scale through a compliant margin mechanism, requiring high risk control and market judgment precision [1] Group 1: Key Points - Leverage Ratio: Typically limited by trading varieties and regulatory rules, with stock leverage generally not exceeding 1:1 and futures leverage ranging from 1:5 to 1:10, strictly adhering to platform-set limits [2] - Holding Period: Primarily short to medium-term, usually 1-5 trading days, with a maximum of 10 trading days to avoid accumulating costs and risks from long-term holdings [2] - Profit Logic: Relies on short-term trend fluctuations of underlying assets to amplify reasonable returns through leverage, without pursuing excessive profits in extreme market conditions [2] - Risk Threshold: Maximum loss per trade is strictly controlled at 10%-15% of the margin, with immediate liquidation upon reaching the stop-loss line to eliminate holding losses [2] Group 2: Operational Characteristics - Sensitivity to Volatility: Minor price changes are magnified by leverage, necessitating close monitoring of intraday charts and short-term K-lines (15/30 minutes) for trend inflection points, requiring higher responsiveness [5] - Cost Structure: Includes margin interest (calculated daily) and transaction fees, with longer holding periods resulting in higher costs, which must be factored into profit calculations [5] - Suitability of Underlying Assets: Only suitable for highly liquid and transparent standardized products (e.g., major index futures, large-cap stocks), avoiding small-cap stocks and low-volume products [5] - Fund Coordination: A reasonable ratio between own funds and leveraged funds must be maintained, with margin adequacy being a core monitoring indicator; timely replenishment or reduction of positions is required when below warning levels [5] Group 3: Practical Considerations - Selection of Products: Prioritize targets with an average daily trading volume exceeding 5 billion, ensuring sufficient liquidity for liquidation, with a bid-ask spread not exceeding 0.5% to minimize slippage losses [6] - Timing of Entry: Entry should occur when trends are clear (e.g., breaking key moving averages, sustained volume increase), and leverage should not be used in volatile markets to avoid unnecessary cost consumption [6] - Position Planning: Total leveraged trading funds should not exceed twice the own funds, with individual leveraged positions not exceeding 30% of total funds, reserving over 50% of own funds to manage volatility [6] - Familiarity with Rules: Complete mastery of the leverage calculation method, margin adjustment rules, and forced liquidation mechanisms is essential to avoid operational errors due to unclear rules [6] Group 4: Risk Control Points - Binding Stop-Loss and Take-Profit: Each trade should preset take-profit (e.g., based on 8%-12% profit after leverage) and stop-loss (e.g., 10% margin loss), triggered automatically by the system without manual intervention [7] - Strict Frequency Control: Limit leveraged trades to no more than 3 per week, with a pause of 3 trading days after two consecutive losses, followed by a review and summary of issues before resuming [7] - Margin Monitoring: Daily checks of margin adequacy before, during, and after trading to ensure it remains above 1.5 times the warning line, with proactive reduction of positions by 50% when nearing the warning line [7] - Response to Extreme Market Conditions: When the daily price change exceeds 5%, reduce positions by 50% regardless of profit or loss; in the event of systemic risks (e.g., index limit down), liquidate all positions to mitigate risk [7]