Futures trading rules?

The trading object of the futures market is futures contracts, which are standardized in terms of quantity, quality grade, delivery grade, premium standard of substitutes, delivery place and delivery time. And both parties need not negotiate the specific terms of the transaction, which facilitates the continuous trading of futures contracts, has strong market liquidity, greatly simplifies the transaction process and reduces the transaction cost.

Second, the deposit system.

Futures trading implements the margin system, that is, traders need to pay a small amount of margin in futures trading, and the margin is generally a certain proportion of the value of the futures contracts they buy and sell (generally 5%- 10%), which can complete several times or even dozens of times of contract transactions. Futures trading has the characteristics of high return and high risk because it can invest a lot of money with a small amount of money and has leverage effect.

Three, two-way trading and hedging mechanism

Two-way trading, that is, futures traders can buy futures contracts as the beginning of futures trading (called buying positions) or sell futures contracts as the beginning of trading (called selling positions), commonly known as "short selling". Linked to the characteristics of two-way trading is the hedging mechanism. In futures trading, most traders do not fulfill the contract by physical delivery when the contract expires, but by trading in the opposite direction to the opening position. Specifically, after buying a warehouse, you can cancel the performance responsibility by selling the same contract, and after selling a warehouse, you can cancel the performance responsibility by buying the same contract. The characteristics of two-way trading and hedging mechanism in futures trading attract a large number of futures speculators to participate in trading, because in the futures market, speculators have double profit opportunities: when futures prices rise, they can make profits by buying low and selling high; When prices fall, they can make profits by selling high and buying low, and speculators can avoid the trouble of physical delivery through hedging mechanism. The participation of speculators has greatly increased the liquidity of the futures market.

Four. No debt settlement system on the same day

The futures exchange implements the debt-free settlement system on the same day, also known as "marking the market day by day", that is, after the daily trading, the exchange settles the traders' profits and losses on that day according to the settlement price of that day. If the trader suffers serious losses and the funds in the margin account are insufficient, he is required to add margin before the market opens the next day, so as to achieve "no debt on the day". If the customer fails to add the margin on time, the futures company will forcibly close some or all of the customer's positions until the margin balance can maintain the remaining positions.

V. Price Limit System

The price limit system means that the trading price of futures contracts in a trading day shall not be higher or lower than the prescribed price limit, and the quotation exceeding this limit will be regarded as invalid and cannot be traded. The maximum price limit in the futures market is generally determined according to the settlement price of the previous trading day of the contract.

Six, the compulsory liquidation system

The forced liquidation system refers to the forced liquidation system implemented by the exchange or futures brokerage company to prevent further risk expansion when the trading margin of members or customers is insufficient and not replenished within the specified time, or when the number of positions held by members or customers exceeds the specified limit.