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. If the amount exceeds the limit, the exchange may, as necessary, forcibly close the position or increase the margin ratio.
Main reporting system
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.
Physical transmission system
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, and settle the open contract.
Margin system
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. The margin system not only embodies the unique "leverage effect" of futures trading, but also becomes an important means for the exchange to control the risk of futures trading.
Daily settlement system
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 at the same time transfer accounts receivable and accounts payable, and increase or decrease the settlement reserve of members accordingly. The settlement of futures trading is classified, that is, exchange settlement members and futures brokerage companies settle customers. After daily settlement, the futures exchange can withdraw funds directly the next day after the opening, while the stock market sells shares on the same day, and the funds need to be withdrawn the next day (except Saturday and Sunday).
Price limit
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.
Compulsory liquidation system
The compulsory liquidation system refers to the compulsory liquidation system implemented by the exchange to prevent further risk expansion when the trading margin of members or customers is insufficient and not replenished within the specified time, or when the positions of members or customers exceed the specified limit, or when members or customers violate the rules. Simply put, it is a compulsory measure for the exchange to close the position of the violator.
Risk reserve
The risk reserve system refers to the system in which a futures exchange draws a certain proportion of funds from the transaction fees charged by its members as a reserve to ensure the exchange's performance.
Information disclosure system
Information disclosure system, also known as publicity system and public disclosure system, refers to a system that in order to protect the interests of investors and accept the supervision of the public, it is necessary to report its own financial changes and operating conditions to the regulatory authorities and exchanges according to law, and make it public or to the public so that investors can fully understand the situation. It includes both the disclosure before issuance and the continuous information disclosure after listing. It mainly consists of prospectus system, periodic report system and interim report system.