I. Trading Rules of Futures Contracts
A futures contract refers to a derivative contract signed by an investor and an exchange, which contains the trading rules agreed by the buyer and the seller. In stock index futures, trading rules involve contract size, contract expiration date, trading time, trading margin and so on.
1. Contract size
Contract size refers to the number of stock indexes contained in each futures contract. Take the SSE 50 Index as an example. The size of each contract is 300 shares. This means that when investors trade, each contract will involve 300 underlying stock indexes.
2. Expiry date of the contract
The expiration date of the contract refers to the last delivery date of the futures contract. In stock index futures, the expiration date of the contract is usually the last trading day of the quarter. Traders must close their positions or make delivery before the contract expires. If the investor fails to close the position on time, the exchange will carry out compulsory closing or delivery operations in accordance with the regulations.
3. Trading time
The trading hours of stock index futures are usually the same as those of the stock market. Take SSE 50 futures as an example. Trading hours are from 9: 00 a.m.15 to 0:30 p.m. and from 1:00 to 3:00 p.m. on weekdays. Investors can buy and sell contracts during this period.
4. Trading margin
Trading margin refers to the funds that investors need to pay when trading futures contracts. The role of the deposit is to ensure the smooth progress of the transaction and enforce the obligations of the contract. The specific margin ratio shall be adjusted by the Exchange according to market conditions.
Second, the implementation mechanism of trading rules.
The implementation mechanism of trading rules refers to the supervision and implementation mode of trading rules by the exchange. In the stock index futures market, the execution of trading rules includes trading interruption mechanism, price mechanism, price limit and so on.
1. Transaction interrupt mechanism
The trading interruption mechanism refers to the provisions of the exchange to suspend trading in the case of abnormal market fluctuations. In the stock index futures market, if the index falls or rises sharply, the exchange will stop trading for a period of time to prevent investors from trading excessively.
2. Price system
The price mechanism refers to the fluctuation range of futures contract prices to prevent excessive price fluctuations. In the stock index futures market, the exchange has set a price range, when the price exceeds this range, it will trigger the measures of trading suspension or adjustment.
3. Price limit
Price limit refers to the rise and fall of futures contract prices. In the stock index futures market, the daily limit and the daily limit refer to the suspension of trading of futures contracts after the price rises or falls to a certain extent within one day.
Third, the risk control of trading rules
Risk control of trading rules refers to a series of measures taken by the exchange to protect the interests of investors and market stability. In the stock index futures market, risk control measures mainly include compulsory liquidation, suspension and delivery.
1. reluctantly sell
Forced liquidation refers to the compulsory liquidation measures taken by the exchange when investors can't fully meet the margin requirements or have a major breach of contract. The Exchange will, according to certain procedures, force the liquidation of futures contracts held by investors to protect market stability and the interests of other investors.
2. Suspend trading
Suspension means that the exchange suspends the trading of one or more futures contracts under abnormal market fluctuations or other special circumstances. This is to prevent excessive price fluctuations and protect the interests of investors and market stability.
Step 3 deliver
Delivery refers to the behavior of investors to make physical or cash delivery in accordance with the agreement when the futures contract expires. In the delivery of stock index futures, investors can choose physical delivery or cash delivery. The delivery method shall be stipulated by the exchange and announced before the expiration of the contract.
Fourth, the practical application of stock index futures rules.
In order to better understand the rules and application of stock index futures, we take SSE 50 futures as an example to illustrate. Assuming that investors predict that the SSE 50 index will rise, they can make a profit by buying SSE 50 futures contracts. According to the trading rules, investors need to know the contract size, expiration date, trading time and margin requirements, and decide the number and time to participate in the trading.
In the course of trading, if the market fluctuates violently, the exchange may start the trading interruption mechanism and suspend trading for a period of time. At this time, investors need to pay close attention to the market situation and adjust their strategies in time.
In the course of trading, if the price fluctuation exceeds the price range, the exchange will suspend trading, and investors need to adjust according to the market trend.
When the expiration date of the contract approaches, investors need to decide whether to close the position or choose delivery. If investors choose to close their positions, they will sell them at the market price and get corresponding income. If investors choose to deliver, they need to deliver in kind or in cash according to the regulations of the exchange.
The trading rules of stock index futures are very important for investors. This paper introduces the trading rules of futures contracts, the implementation mechanism of trading rules and risk control measures, and makes a concrete explanation by taking SSE 50 futures as an example. By understanding and applying these trading rules, investors can better participate in the stock index futures market and realize investment income.