Suppose you have 100 yuan in funds, but you only used 33 yuan for investment. At this point, you notice an interesting phenomenon: your Return on Investment is as high as 63.46%, while the actual market rise is only about 0.5%.

What is going on here? It turns out that you used 125x leverage. Normally, with a capital of 33 yuan, a 0.5% rise should yield only about 0.16 yuan. However, due to the effect of leverage, your actual profit reached as much as 21 yuan.

This is the power of leveraged trading. It can amplify small market fluctuations into huge profits (of course, it can also lead to huge losses). Although this trading method can bring considerable returns, it also carries significant risks.

Understanding this characteristic of leveraged trading is crucial. It allows investors to leverage a larger market with relatively small capital, but it also requires investors to possess stronger risk management skills and market insight. While enjoying high returns, one must always be vigilant of potential risks.

Overall, leveraged trading is a double-edged sword that can bring amazing returns but also lead to significant losses. Investors need to be particularly cautious when using leverage, fully assess their risk tolerance, and develop strict risk control strategies.