Futures trading is a kind of trading that investors often participate in. Futures trading can make life rich and property shrink. Therefore, when investors do transactions, it is the first important thing to control risks and keep the principal. In the futures market, when the same customer opens positions in different members, the total positions in a contract shall not exceed the position limit of the customer.

What if I exceed the position limit?

If the position limit is reached or exceeded, member customers cannot open positions in the same direction. According to the regulations of the exchange, when the limit is exceeded, the futures company where the investor is located will be required to close its position on its own at the close of the day. If the liquidation is not completed within the specified time, the exchange will force liquidation and limit the account opening authority.

If the investor is forced to close the position, the account opening authority will be restricted. In principle, the opening hours will be limited to more than one month. However, investors who exceed the limit are all completed within the specified liquidation time to avoid the embarrassing situation of limited trading authority and affect subsequent transactions. At the same time, if you are forced to close your position, it is likely to be blacklisted, which will affect your personal integrity.

In the futures market, futures exchanges limit the number of customers' positions, mainly to prevent market risks from being excessively concentrated on a few traders and to prevent market manipulation. At the same time, the position limit is also stipulated to prevent the physical delivery volume from being too large on the expiration date of the contract, which will lead to the risk of default in bulk delivery.