Margin refers to the margin paid by investors in the futures and options trading market to business-related enterprises to ensure the performance of contractual obligations. This fund is only a deposit, not a part of the contract deposit. When the margin required by the customer is less than a certain amount, the part that the intermediary company requires the customer to supplement is called additional margin. If the franchisees or investors violate the rules, or fail to increase the trading margin in time or commit other violations, the Exchange will take compulsory liquidation measures against the franchisees who violate the rules.
What are the precautions?
When the available funds in your account are already or not enough to pay the margin of the varieties you hold, the futures company will force all or part of your account to be closed. Without risk management, during the delivery period, if your additional insurance cash is not enough to pay the margin added the next day, after hedging before the start of the trading day, the rest must be forced to close the position through one-way contract price increase (short position) or price reduction (multiple positions). If it is forced to close the position, please note that all your positions are forced to close. If you don't plan to increase the deposit at the time of delivery, please be careful not to operate in Man Cang and control the warehouse to avoid explosion.