Additional margin refers to the increase in the amount of margin paid by members required by the settlement institution in order to maintain the amount of margin at the initial margin level when the amount of margin account is insufficient.

In order to prevent liabilities, the clearing house adopts the mark-to-market principle and uses the daily clearing price to calculate the profit and loss of members' net trading positions. When losses occur and the amount of the margin account drops, the clearing house requires members to pay extra margin. In the process of margin trading, according to the evaluation loss, if the evaluation loss of the position sheet reaches the specified amount, that is to say, when the evaluation loss exceeds 40% of the trading margin, or when the minimum deposit balance of the account falls below the bottom line of 60%, it will be required to add the insufficient amount.

Example of profit growth

The equity of the day minus the position margin is the fund balance. If the equity of the day is less than the position margin, it means that the fund balance is negative and the margin is insufficient. According to the regulations, the futures brokerage company will notify the account owner to make up the deposit before the market opens on the next trading day. This move is called additional margin. If the account owner fails to make up the margin before the opening of the next trading day, the futures brokerage company may, in accordance with the provisions, implement partial or full compulsory liquidation of the account owner's positions until the retained margin meets the specified requirements.

For example, a customer's account has an original deposit of 200,000 yuan. On August 9th, I opened a position to buy September Shanghai and Shenzhen 300 Index futures contract 15 lots, with an average price of 1 0,200 points (spot 1 1,000 yuan), and the handling fee was unilateral 10 yuan/lot, and the settlement price of the day was 1 654.

Profit and loss of opening positions on that day = (1195-1200) ×15 ×100 =-7, and 500 yuan handling fee =10 ×15 = 350 yuan's margin occupation =1195×15×100× 8% =143, and 400 yuan's fund balance (i.e. trading funds) =192,350-/.

On August 10, the customer did not trade, but the settlement price of the September contract of Shanghai and Shenzhen 300 index futures fell to 1 150. The account situation on that day was as follows:

Historical position gain and loss = (1150-1195) ×15×100 =-67,500 yuan; current equity =192350-. 850 yuan margin occupation =1150×15×100× 8% =138,000 yuan fund balance (i.e. opening fund) =124,850-

Obviously, to maintain the long position of 15 lots, the margin is still short of 13, 150 yuan, which means that the margin of 13, 150 yuan must be added before the market opens on the next trading day. If the customer fails to make up the margin before the opening of the next trading day, the futures brokerage company may partially close the position. After calculation, 850 yuan's equity can reserve at most 124 positions, and 850 yuan/(1150×100× 8%) =13.57 lots. In this way, brokers can close at least 2 lots.