(1) When opening a position, the position can be opened only when the margin opening adequacy ratio is met, and the position will occupy the margin, but there is no actual change in the account funds. Bank of China will freeze the deposit equivalent to the face value of the opening contract from your trading account in the order of cash first and remittance later. You open a position through the entrusted transaction, and the entrusted contract does not occupy the deposit before the transaction is completed at this price. When the consignment price is reached, Bank of China will freeze the deposit according to the face value of the consignment contract. If the margin in your trading account is insufficient at the time of bank quotation, the entrusted transaction will not be closed and will be cancelled automatically.
(2) When you close your position, you can hedge all or part of the open position contracts by establishing a contract with the opposite direction to the original open position contracts, and the closed position contracts will offset the deposit amount occupied by the original open position contracts accordingly. If you choose the trading method of "opening the position first, closing the position first", its excess position will be regarded as reverse opening. You close your position through the entrusted transaction, and the entrusted contract does not occupy the deposit until the transaction is completed at this price. When the price rises, China Bank will release all or part of the deposit occupied by the original opening contract.
(3) Before trading crude oil, you must ensure that there is sufficient trading margin in its trading account, and the margin adequacy ratio is 100%, that is, the trading margin you need to pay is equal to the nominal amount of the opening contract. Trading margin is the funds that you voluntarily transfer from the signing account to the trading account, as a guarantee for you to establish and support the margin trading contract. Your margin account is opened in a branch. You use all the funds in the trading account to guarantee the transaction. The funds in the special trading account shall not report the loss, directly withdraw cash, issue certificates of deposit or provide guarantees for other debts. In case of judicial freezing, Bank of China has the right to take measures to avoid its own losses, such as requiring you to provide supplementary guarantees, bear the corresponding losses, or forcibly liquidate your open positions.
If in doubt, please continue to consult the online customer service of Bank of China. If you have other business needs, please download the mobile banking APP of Bank of China or follow "Bank of China Micro-Banking" on WeChat to continue consulting and handle related business.