Or risk) high efficiency and high risk; Second, the term of the futures contract. The object of futures trading is that futures contracts have different time periods and different futures contracts have different time values; The market liquidity is different, and the price representativeness and factors affecting its price change are also different.
In addition, China's existing futures trading system also has the following characteristics:
(1) day debt-free settlement system, that is, every transaction is settled on the same day. When the margin is insufficient, the margin must be added in time within the prescribed time limit, or the futures contracts held by the company should be closed until the margin requirements are met.
(2) It is a price limit system, which refers to limiting the maximum price fluctuation range of futures contracts in a trading day.
3) Position restriction system, which limits the positions of customers and members to a certain proportion or a certain number according to different listed products and different contracts and certain rules.
(4) The hedging system refers to the spot-related enterprises that need to avoid risks in the futures market according to their participation in the spot market transactions, and apply for hedging and are approved by the exchange, and are not subject to the position limit stipulated in the position limit system.
(5) reporting system for large accounts. When a member or customer holds a certain number of positions, a written report must be submitted to the exchange.
(6) Compulsory liquidation system. When the margin is insufficient and cannot be replenished within the specified time, and the amount exceeds the position limit, it is necessary to implement the risk control system of compulsory liquidation of the futures contract held.
Due to the above characteristics of futures trading, the general futures market implements a strict risk control system. For example, when the market position of a futures contract reaches a certain amount, a certain percentage of trading margin will be increased for the contract; When a contract price rises or falls in the same direction for three consecutive trading days, the rules stipulate that hedgers who hold unfavorable positions and are willing to close their positions are allowed to go out.
In the securities market, stock trading is spot trading. The obvious difference between spot trading and futures trading is the real-time exchange of full amount and goods. Generally, there are no problems in spot trading of stocks, such as expiration, margin system, additional margin system, forced liquidation system and short-selling mechanism. Of course, securities trading sometimes draws lessons from the futures market's price limit system.