Commodity futures trading system generally includes opening, closing, quotation, closing, recording, closing, settlement and margin, delivery, dispute settlement and penalty for breach of contract.
System 1: security deposit
In futures trading, any trader must pay a certain proportion (usually 5- 10%) of the value of the futures contract he buys and sells as the fund guarantee for the performance of the futures contract, and then he can participate in the futures contract trading and decide whether to add funds according to the price change. This system is the deposit system, and the funds paid are the deposit.
System 2: Daily Settlement
The settlement of futures trading is organized by the exchange. The futures exchange implements a daily debt-free settlement system, also known as "marking the market day by day", that is, after the daily trading, the exchange will settle the profits and losses, trading deposits, handling fees, taxes and other expenses of all contracts according to the settlement price of the day, and transfer accounts receivable and accounts payable at the same time, and raise or lower the settlement standards of members accordingly.
System 3: Price Limit Board
The price limit system, also known as the daily maximum price fluctuation limit, means that the trading price fluctuation of futures contracts in a trading day should not be higher or lower than the specified price fluctuation range, and the quotation exceeding this price fluctuation range will be regarded as invalid and cannot be traded.
System 4: Position Limit
The position limit system refers to the system that the futures exchange restricts the positions of members and customers in order to prevent the manipulation of market prices and the excessive concentration of futures market risks on a few investors. An exchange that exceeds the limit may forcibly close its position or increase the margin ratio in accordance with regulations.
System 5: extended family report
The large-sum declaration system means that when the speculative position of a member or customer's position contract reaches more than 80% (inclusive) of the position limit stipulated by the exchange, the member or customer should declare his capital and position to the exchange, and the customer can declare it through the brokerage member. The large household declaration system is another system closely related to the position limit system to prevent large households from manipulating market prices and control market risks.
System 6: Physical Delivery
The physical delivery system refers to the system formulated by the exchange. When the futures contract expires, both parties to the transaction transfer the ownership of the goods contained in the futures contract according to the regulations to settle the open contract.
System 7: Forced liquidation