Do personal futures profits need to be taxed?
1. Individual income tax is not required for the income of retail investors trading futures.
2. Retail futures trading only involves the payment of handling fees, not personal income tax.
Main characteristics of futures
1. The terms and conditions of a futures contract, such as commodity variety, trading unit, contract month, margin, quantity, quality, grade, delivery time and delivery place, are established and standardized, and the only variable is price. The standards of futures contracts are usually designed by futures exchanges and listed by national regulatory agencies.
2. The futures contract is concluded under the organization of the futures exchange and has legal effect, and the price is generated by public bidding in the trading hall of the exchange; Most foreign countries adopt public bidding, while our country adopts computer trading.
3. The performance of futures contracts is guaranteed by the exchange, and private transactions are not allowed.
4. Futures contracts can fulfill or terminate their contractual obligations through the settlement of spot or hedging transactions.
Transaction characteristics
1, bidirectional
One of the biggest differences between futures trading and stock market is that futures can be traded in both directions, and futures can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and buy low. Going long can make money, and shorting can also make money, so there is no bear market in futures. In a bear market, the stock market will be suppressed, while the futures market will remain unchanged and opportunities will still exist. )
2, the cost is low
Futures trading countries do not levy stamp duty and other taxes, and the only cost is the transaction fee. The procedures of the three domestic exchanges are about two ten thousandths or three ten thousandths, plus the additional fees of brokers, and the unilateral handling fee is less than one thousandth of the transaction amount. Low cost is the guarantee of success.
3. Leverage
Leverage principle is the charm of futures investment. Futures market transactions do not need to pay all the funds, and domestic futures transactions only need to pay 5% margin to obtain future trading rights. Due to the use of margin, the original market has been enlarged ten times. Assuming that the daily limit of copper price closes on a certain day (the daily limit in futures is only 3% of the settlement price of the previous trading day), the operation is correct. The return on capital is as high as 60%(3%÷5%), which is six times the daily limit of the stock market. (You can make money only if you have the opportunity)
Step 4 double the chance
Futures is a "T+0" transaction, which makes your capital use to the extreme. After grasping the trend, you can close your position at any time. (Convenient access can increase the security of investment)
5, greater than the negative market
Futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction costs of capital entry and exit, the total amount of funds in the futures market remains unchanged, and the profits of market participants come from the losses of another trader. The stock market has entered a bear market, the market price has shrunk dramatically, the dividends are meager, the state and enterprises absorb funds, and there is no short-selling mechanism. The total amount of funds in the stock market will show negative growth for a period of time, and the total profit is less than the loss. (Zero is always greater than negative number) The comprehensive national policy, the needs of economic development and the characteristics of futures itself all determine that futures have huge room for development. The full name of stock index futures is stock price index futures, which can also be called stock index futures and futures index. Refers to the standardized futures contract with the stock index as the target. The two sides agreed to buy and sell the underlying index on a specific date in the future according to the size of the stock index determined in advance. As a type of futures trading, stock index futures trading has basically the same characteristics and processes as ordinary commodity futures trading.
To sum up, we can clearly know that the profits after futures trading do not need to pay personal income tax, but only need handling fees. Moreover, the futures contract is concluded under the organization of the futures exchange, which has legal effect and is guaranteed by the exchange. Private transactions are not allowed.