(1) general trading instruction
The commonly used trading orders in the world include: market order, limit orders, stop-loss order and cancellation order. There are two kinds of trading orders in China Futures Exchange: limit orders and cancellation orders, and the trading orders are valid on the same day. Before the order is closed, the customer can propose changes or cancellations.
1, market price instruction
The market price list is one of the orders commonly used in futures trading. Refers to the order to close the transaction immediately at the current market price. When issuing this order, the customer does not need to specify a specific price, but requires the representative of the futures brokerage company to close the transaction at the best price that can be executed in the market at that time. This kind of instruction is characterized by high transaction speed and cannot be changed or revoked once it is issued.
2. Limit order
A limit order refers to an order that must be executed at a limited price or better. When placing a price limit order, the customer must indicate the specific price. Its characteristic is that it can close the transaction according to the customer's expected price, and the transaction speed is relatively slow, and sometimes it is impossible to close the transaction.
3. Stop loss instruction
A stop-loss order refers to an order that becomes a market order when the market price reaches the price level expected by customers. By using stop-loss instructions, customers can effectively lock in profits, minimize possible losses and establish new positions with relatively little risk. (At present, there is no such instruction in China)
4. Cancel the instruction
Cancellation order refers to the customer's request to cancel the order. By executing this instruction, the customer completely cancels the previous instruction, and there is no new instruction to replace the original instruction.
All orders issued by a futures brokerage company to customers must be centrally matched through the exchange, and no private hedging is allowed, and no profit guarantee or profit sharing is allowed with customers.
(2) Method of placing orders
Before the formal transaction, the customer should make a detailed and thorough transaction plan. After that, customers can place orders as planned. Customers can send trading instructions to futures brokerage companies in writing, by telephone or in other ways as stipulated by the China Securities Regulatory Commission. The specific ordering method is as follows:
1, written order
The customer fills in the transaction form in person, signs it and submits it to the trading department of the futures brokerage company. Then the trading department of the futures brokerage company calls the company's market representative in the futures exchange, inputs instructions, and enters the exchange mainframe for trading.
Step 2 order by phone
The customer directly sends the order to the trading department of the futures brokerage company by telephone, and then the trading department informs the market representative to place the order. The futures brokerage company shall record the customer's instructions for future reference. After the activity, the customer should sign the transaction form.
After accepting the customer's instructions, the futures brokerage company shall promptly notify the market representative. The market representative shall timely input the customer's instructions into the computer terminal of the trading seat for bidding trading.
(3) Bidding
The formation of domestic futures contract prices is: computer matching transactions.
Computer matching transaction is a computer automatic trading method designed according to the principle of open outcry, which refers to the process of matching the trading orders of both parties in the computer trading system of futures exchange. This trading method is accurate and continuous.
The operation of computer trading system of domestic futures exchanges generally sorts the trading declarations according to the principle of price priority and time priority. When the buying price is greater than or equal to the selling price, the matching transaction price is equal to the middle value of the buying price (bp), the selling price (sp) and the previous transaction price (cp).
Both the opening price and closing price are generated by call auction.
The opening price of call auction is conducted within 5 minutes before the opening of a contract in a certain month of each trading day, in which the first 4 minutes are the time to declare the purchase and sale price orders of futures contracts, and the last 1 minute is the time for call auction to match, and the opening price is generated at the opening of the market.
Call auction's closing price shall be conducted within 5 minutes before the closing of each trading day of a certain month's contract, in which the first 4 minutes are the reporting time of the buying price and selling price of the futures contract, and the second 1 minute is the call auction's matching time, and the closing price will be generated at the closing time.
The trading system automatically controls the start and end of call auction declaration and displays it on the computer terminal.
Call auction adopts the principle of maximum turnover, that is, the maximum turnover can be obtained at this price. All the buying declarations higher than the price generated by call auction are sold; All sales declarations below the price generated in call auction were sold; For the purchase or sale declaration with the same price as that generated in call auction, the transaction shall be made according to the quantity of the purchase declaration and the quantity of the sale declaration, and according to the quantity declared by the minority party.
(4) Return and confirmation of the transaction
After receiving the trading order, the market representative of the futures brokerage company will input the order into the computer as quickly as possible after confirming that it is correct. When the computer displays the closing instructions, the market representative must immediately feed back the trading results to the trading department of the futures brokerage company. The trading department of the futures brokerage company records the trading results fed back by the market representatives on the trading table and stamps it with a time stamp, and then reports the recording table to the customer. The transaction return record shall include the following items: transaction price, transaction times, transaction return time, etc.
If the customer has any objection to the items recorded in the transaction settlement form, he shall submit a written objection to the futures brokerage company before the market opens on the next trading day; If the customer has no objection to the items recorded in the transaction result sheet, it shall sign the transaction settlement sheet or confirm it in the way agreed in the futures brokerage contract. If the customer refuses to confirm or raise any objection to the items recorded in the transaction settlement form, it shall be deemed as the confirmation of the transaction settlement form. If the customer has any objection, the futures brokerage company shall verify it according to the original instruction records and transaction records.