2. Treasury bond futures trading must be conducted at the designated trading place. Treasury bond futures trading is a standardized transaction, which is usually conducted on a stock exchange or a futures exchange. Off-exchange or private trading is not allowed, and private hedging is not allowed. Exchange is the intermediary of futures trading, which not only provides trading places for both parties, but also formulates and promulgates various rules and regulations related to trading to ensure the orderly trading. More importantly, it is also the rival seller of all buyers in futures trading, and it is also the rival buyer of all sellers, that is, futures is characterized by investors signing contracts with exchanges. This is also the difference between treasury bond futures trading and treasury bond forward trading. Forward trading of treasury bonds can be directly signed by investors, and buyers and sellers can also trade on their own at the counter.
3. The subject matter of treasury bond futures trading has dual significance. The dual meanings of the subject matter of treasury bond futures trading are as follows: First, the subject matter of treasury bond futures trading is China bonds. Because, if the treasury bond futures trading is due for delivery, the delivery target is the China bonds actually issued by the government, not any other bonds. Secondly, the target of treasury bond futures trading is actually a standard futures trading contract (at least for the first time), because both buyers and sellers are a standard futures contract. Therefore, we can understand that the object of treasury bond futures trading is the standard treasury bond futures contract, and the deliverable specified in the futures contract is the specific treasury bond. The standard treasury bond futures contract is completely different from the actual treasury bond. On the one hand, the standard treasury bond futures contract itself is not the government's debt, and the transaction it stipulates is the government-issued treasury bonds. On the other hand, the standard treasury bond futures contract is inseparable. Quantity of national debt, delivery period, trading price, etc. What is said in it is predetermined and cannot be divided. Investors can only buy and sell this contract once, and can't break it down into several parts.
4. Treasury bond futures trading is margin trading (also called leveraged trading). In the transaction of treasury bonds, investors can generally buy and sell a treasury bond futures contract only by paying a small margin, and the amount of treasury bonds to be delivered at that time stipulated in this treasury bond futures contract is relatively large. The face value divided by the margin stipulated in the treasury bond futures contract is the magnification of treasury bond futures trading. For example, in China's previous treasury bond futures trading, the Shanghai Stock Exchange stipulated that investors of non-member companies only had to pay the 500 yuan deposit for each treasury bond futures contract (as for members, the required deposit amount was even lower, and they could even overdraw, which was one of the important reasons for the "March 27" storm that shocked China and foreign countries later). At that time, the face value of a national debt futures contract stipulated by the Shanghai Stock Exchange was 20,000 yuan, so it was enlarged 40 times. It is precisely because treasury bond futures trading is a kind of leveraged trading, which has the function of amplifying risks and benefits, so its possible profits and losses are generally relatively large, and it is a typical high-risk transaction. Because of this, the debt-free daily settlement system is generally implemented in treasury bond futures trading to control risks, that is, investors' profits and losses should be settled every day after the transaction, and profitable investors can withdraw them for other purposes. If there is a loss, investors must make up for it before a limited time.
5. Treasury bond futures trading rarely leads to final physical delivery. Because treasury bonds futures are traded in standard futures contracts, trading and delivery are not synchronized, most investors in treasury bonds futures often have already made a transaction with the same amount as the original transaction before delivery, thus ending the original futures contract, and the final profit and loss is expressed as the price difference between the two transactions. This is also the difference between treasury bond futures trading and treasury bond forward trading. When the forward transaction of treasury bonds arrives at the delivery date, buyers and sellers generally have to settle the money and bonds at a predetermined price. In addition, in the treasury bond futures trading, investors can choose to buy before selling, or they can choose to sell before buying. In the spot transaction of national debt, except for credit transaction, you can only buy it first and then sell it.
6. Treasury bond futures trading is a kind of financial derivative trading, and the risk is much greater than spot trading. Because treasury bond futures trading is margin trading, investors only need to pay a small amount of margin before formal delivery or settlement. So its risks and possible benefits are huge (that is, its transactions have the characteristics of amplifying risks or benefits). If investors are not careful, they may be forced to close their positions and sweep the floor, instead of turning losses into profits as long as they don't cut their meat, even if they are trapped in real transactions. Futures trading is time-limited, and after the delivery date, it is a piece of waste paper. This is also one of the important reasons why futures trading has a certain capital threshold.