The fundamental reason for the rise and fall of futures prices is the participation of main forces or large funds. If you want to dance with the main force, you must know an important concept: the red K line is drawn with gold, and the green K line is drawn with futures orders. Simply put, the rise and fall of futures prices is only the relationship between supply and demand, and the balance point between supply and demand sought between money and futures is futures prices.

The specific provisions of the price limit system are as follows:

First, the futures exchange implements the price limit system, and the exchange sets the daily maximum price fluctuation range of each futures contract.

Second, when futures contracts are traded at the daily limit price, the principles of liquidation priority and time priority apply to the transaction, but the principle of liquidation priority does not apply to new positions opened on the same day.

Three, unilateral discontinuous market (hereinafter referred to as unilateral market) refers to the futures contract with a buy (sell) declaration but only a stop-loss price, a sell (buy) declaration but no stop-loss price, or a sale (buy) declaration is made, but no stop-loss price is offered within 5 minutes before the closing of a trading day. Unilateral market in the same direction is called unilateral market when there is no continuous quotation on one side of the stop-loss board in the same direction for two consecutive trading days; On the next trading day after the appearance of unilateral quotation, there is no continuous quotation in the reverse direction, which is called reverse unilateral quotation.

Fourthly, when the futures contract has a unilateral market on a certain trading day (this trading day is called Dl trading day, and the following trading days are called D2, D3, D4, D5 and D6 trading days respectively), when the futures contract is settled on D 1 trading day, the trading margin of the contract will be adjusted as follows: the trading margin ratio of copper futures contract is 7%, and those higher than 7% will be charged according to the original proportion; The trading margin ratio of aluminum futures contracts is 7%, and those that have received more than 7% will be charged according to the original ratio; The trading margin ratio of natural rubber futures contracts is 7%, and if the charging ratio is higher than 7%, it will be charged according to the original ratio; The trading margin ratio of fuel oil futures contracts is 10%, and those with a charge ratio higher than 10% will be charged according to the original ratio. On the D2 trading day, the price of copper futures contracts is limited to 5%, aluminum futures contracts to 5%, natural rubber futures contracts to 6% and fuel oil futures contracts to 7%.

Fifth, if there is no unilateral market for futures contracts on D2 trading day, that is, the fluctuation range of copper futures contracts is less than 5%, aluminum futures contracts is less than 5%, natural rubber futures contracts are less than 6%, and fuel oil futures contracts are less than 7%, then the ratio of fluctuation range to trading margin will return to normal level on D3 trading day.

Sixth, if there is no unilateral market in D3 trading day, that is, the fluctuation range of copper futures contract is less than 6%, aluminum futures contract is less than 6%, natural rubber futures contract is less than 6%, and fuel oil futures contract is less than 10%, then the ratio of price limit to trading margin will return to normal level in D4 trading day.