Profit and loss settlement of futures trading includes liquidation profit and loss settlement and position profit and loss settlement.

2. Performance of secured transactions

Once the futures trading is completed, the exchange will be fully responsible for ensuring that each transaction is carried out as planned. There is no direct relationship between the two parties to the transaction, but only with the settlement institution, which becomes the buyer of all contract sellers and the seller of all contract buyers. For traders, because the risk of counterparty's default has been completely borne by the settlement institution, as long as the settlement institution can guarantee the performance of the contract, it is completely unnecessary to know the credit status of the counterparty and who the counterparty is.

3. Control market risks

Margin system is the most basic system to control market risks. As the collection and management institution of settlement deposit, the settlement institution shall bear the responsibility of risk control. The so-called settlement deposit is the deposit charged by the settlement institution to the settlement member.