Floating profit and loss:

Floating profit and loss refers to the profit and loss on the book when the position is not open. At this time, market volatility has not yet formed actual losses, and it is still full of uncertainty. When investors close their positions, the profits and losses on the books will be converted into actual profits and losses. In real transactions, floating profits and losses will bring psychological influence to investors. Some investors who gamble heavily always die if they lose money, or become more greedy if they make money.

Extended data:

1. Calculate floating gains and losses. That is, the settlement institution calculates the floating profit and loss of the open positions of the members according to the settlement price of the transaction on that day, and determines the amount of the deposit payable for the open positions. The calculation method of floating profit and loss is: floating profit and loss = (settlement price of the day-opening price) x position x contract unit-handling fee. If it is positive, it means that it is a long floating profit or a short floating loss, that is, the price increase after the long position is a long floating profit, and the price increase after the short position is a short floating loss. If it is negative, it means that the bulls are floating losses or short positions are floating profits, that is, the price falls after the bulls open positions, indicating that the prices fall after the bulls open positions.

Explain that short positions are profitable. If the amount of margin is not enough to maintain the open position contract, the clearing institution will inform the members to make up the difference before the market opens the next day, that is, to add margin, otherwise it will be forced to close the position. If there are floating profits, members can't put forward this part of the profits unless the liquidation contract is closed and the floating profits are turned into actual profits.

2. Calculate the actual profit and loss. The profit and loss realized by liquidation is called actual profit and loss. Most contracts in futures trading are closed by liquidation.

The calculation method of the actual profit and loss of bulls is:

Profit and loss = (closing price-buying price) × position × contract unit-handling fee

The calculation method of short-term profit and loss is:

Profit and loss = (selling price-liquidation) × position × contract unit-handling fee

When there are risks in the futures market, some members have insufficient trading margin or overdraft due to excessive trading losses. The procedures for handling risks in the settlement system are as follows:

(1) Notify members to add margin;

(2) If the margin increase is not in place, first stop members from opening new positions and force members to close open positions;

(3) If the balance of the member's margin is not enough to make up for the losses after all liquidation, the member's settlement reserve at the exchange shall be used;

(4) If it is still insufficient to make up the loss, transfer the membership fee and seat fee of the member;

⑤ If it is still not enough to make up for the losses, use the risk reserve of the exchange to make recourse to the members.