1. margin: in margin trading, buyers and sellers only need to pay a small amount of margin to the broker. There are two purposes to pay the deposit: (1) to protect the interests of the brokerage firm. When the customer fails to pay for some reason, the brokerage firm will compensate with the deposit. (2) In order to control the speculative activities of the exchange. In general, the down payment is about 10% of the total contract price. Margin is essentially a sum of money paid by a trader to a commodity clearing house through a broker, without calculating interest, to ensure that the trader has the ability to pay commissions and possible losses. But trading margin is by no means a margin for buying and selling futures.
2. Short position: The standard concept is that short position means that the loss is greater than the deposit in your account. After the company is forced to draw a tie, the remaining funds are the total funds MINUS your losses, and generally there will be a part left. Under normal circumstances, under the daily liquidation system and the compulsory liquidation system, there will be no explosion of positions. However, in some special circumstances, such as when there is a gap change in the market, accounts with more reverse positions are likely to explode. (However, in China, the short position often just means that the margin is insufficient and the position is automatically closed by the system. In the standard concept, the situation of negative account equity is called "through positions" in the industry. This kind of situation rarely happens under the current computer technology ability. )
3. Handling fee: This is the transaction fee paid by the investor in each transaction, which is automatically deducted according to a certain proportion according to the current price of the investment target.
4. Spread: The standard concept is the difference of point fluctuation when the exchange rate changes, which can be understood as the transaction service fee charged by each exchange to all investors.
5. Deferred charges: Deferred charges are in the external market, and similar charges are called warehouse interest or overnight charges. The purpose is generally understood as a price means to encourage intraday trading. Like the outer disk, the delay fee of the inner disk is automatically calculated and deducted according to a certain proportion according to the daily settlement price.
6. Position: Position refers to the amount of funds owned or borrowed by investors. Position is a market agreement, which promises to buy and sell the initial position of the standard contract. The buyer of the standard contract is long and expected to rise; Sell the standard contract as an empty position, and the empty position is in the expected position.
7. Buy more and sell short: When the contract price rises, the transaction that gains by buying the standard contract is usually called buy more. Selling a standard contract can only be profitable if the contract price falls, which is also commonly known as short selling.