The position limit system is a system for futures exchanges to prevent excessive concentration of market risks in the hands of a few traders, prevent market manipulation, and limit the number of positions held by members and customers. Position limit refers to the maximum number of positions that a member or customer can hold in a contract according to the regulations of the exchange. If an investor applies for a hedging amount, it shall report to the futures company where it opens an account, and the futures company shall go through the reporting formalities with the exchange after reviewing the application materials. When reporting, you must fill in the Hedging Application (Approval) Form of China Financial Futures Exchange and submit the following supporting materials to the Exchange. Individual investors must submit a copy of their ID cards, and legal person investors must submit a copy of their business licenses and audited balance sheets, income statements and cash flow statements in the past two years. The applicant needs to prove the holding status of the hedged spot assets. The applicant's hedging plan.

Description of the applicant's historical hedging. Statement on the authenticity of the applicant's materials for membership guarantee. The Exchange shall review the hedging application materials, notify those who meet the hedging conditions in writing to approve the application, determine the hedging quota, and adjust the investor's position limit in the contract according to the quota. The hedging amount shall not exceed the amount declared in the hedging certification materials provided by it. If it does not meet the hedging conditions, it will not be handled in writing, and if the relevant certification materials are insufficient, it will inform the applicant to supplement the certification materials. The hedging amount shall be approved by the contract, valid before the last trading day (inclusive) of the contract, and can be reused within the validity period. The specific implementation of the position limit system shall be subject to the provisions officially announced by CICC. Members and gamblers must control their positions within the position limit, and reduce their positions within the prescribed time limit.