After completing all formalities, the customer pays the deposit for opening an account as required. After the customer's funds arrive, futures trading can be carried out. But when the customer's margin is insufficient, it is necessary to add the margin in time, otherwise it will be forced to close the position. (Note: High leverage ratio is an important feature of stock index futures-in the UK, for example, a futures trading account with an initial margin of only 2,500 pounds can trade 100 index futures of the Financial Times, with a maximum leverage ratio of 70,000 pounds1. Because the amount of margin payment is determined according to the market value of the index futures traded, the exchange will decide whether to add margin or withdraw excess according to the price change of the market. )2、
In principle, the trading of stock index futures is the same as that of securities, and centralized computer bidding is conducted according to the principle of price priority and time priority. Trading orders, like securities, have three kinds of orders: market order, limit orders order and cancellation order. Unlike securities, stock index futures are futures contracts, and the direction of buying and selling is very important, which is also a common mistake made by many stock investors when they do futures trading for the first time. Futures have two positions: long position and short position, which can be opened and closed in trading. Closing positions can also be divided into closing positions and over positions.
In the transaction, we should also pay attention to the terms of the contract. Generally speaking, there are four kinds of stock index futures contracts within half a year, namely, the spot month contract, the next month contract and the last two quarters contract. With the monthly delivery, the contract will be rolled forward once. For example, in September, there are four contracts: September,1October,1February and March of the following year, and the1October contract needs to be delivered at the end of1October.
3. Ordering refers to the behavior that investors send trading orders to futures companies before each transaction, explaining the types, directions, quantities and prices of the contracts to be bought and sold.
4. Settlement refers to the business activities of calculating and distributing the trading deposits, profits and losses, handling fees and other related funds of members and investors according to the trading results and relevant provisions of CICC.
5. Liquidation or delivery
Closing a position refers to the behavior of investors to end a transaction by buying or selling contracts of the same variety and quantity but in the opposite direction.
Delivery refers to the behavior of investors in the form of cash settlement when the contract expires. The delivery of stock index futures is also different from stocks. Ordinary stock investors are used to spot trading, but it is easy to ignore that stock index futures contracts need to be settled in cash at the contract delivery price of the day, so they need to hold non-spot monthly contracts to hold positions.