The futures exchange is a formal trading platform supervised by the CSRC and endorsed by the state, and trades according to law. Trading is a standardized futures contract. Both buyers and sellers need to pay a fixed margin to the exchange and use the credit margin as a guarantee for futures trading. The risk of price fluctuation is the biggest market risk that investors face in futures trading.
Extended data:
(1) The procedure for a futures trader to open an account with a brokerage firm includes signing a power of attorney authorizing the brokerage firm to buy and sell the contract on its behalf and paying the handling fee. After being authorized, the brokerage company can handle futures trading according to the terms of the contract and the customer's indicators.
(2) After receiving the customer's instruction, the broker shall immediately notify the representative of the brokerage company in the exchange by telephone, telex or other means.
(3) The trading representative of the brokerage company stamps the received order and sends it to the market representative in the trading hall.
(4) On-site and off-site representatives input customer instructions into the computer for trading.
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