In the futures market, traders can pay a small amount of money according to a certain proportion of the price of futures contracts as financial guarantee for the performance of futures contracts and participate in the trading of futures contracts. This kind of money is the futures margin.

In China, futures margin (hereinafter referred to as margin) varies according to its nature and function. It can be divided into two categories: settlement reserve and trading margin. Settlement reserve is generally paid by member units to the exchange according to fixed standards, and prepared in advance for transaction settlement. Trading margin refers to the actual margin paid by member companies or customers for holding futures contracts in futures trading, which is divided into initial margin and additional margin.

Initial margin is the money that traders need to pay when they open new positions. According to the transaction amount and margin ratio, that is, initial margin = transaction amount and margin ratio. At present, the minimum margin ratio in China is 5% of the transaction amount, which is generally between 3% and 8% internationally. For example, the soybean margin ratio of Dalian Commodity Exchange is 5%. When a customer buys five soybean futures contracts (each 10 ton) at a price of 2,700 yuan/ton, he needs to pay an initial deposit of 6 750 yuan (i.e. 2700x50x5%%) to the exchange.

In the process of holding positions, traders will have floating profits and losses (the difference between settlement price and transaction price) due to the constant changes of market conditions, so the funds actually available in the margin account can be increased or decreased at any time. Floating profit will increase the balance of margin account, while floating loss will decrease the balance of margin account. The minimum balance that must be kept in the margin account is called maintenance margin. Maintenance margin: the settlement price is adjusted to the position, and the margin ratio is adjusted to xk(k is a constant, which is called the maintenance margin ratio, which is usually 0.75 in China). When the book balance of the margin is lower than the maintenance margin, the trader must make up the margin within the specified time to make the margin account balance (settlement price x position x margin ratio), otherwise the exchange or institution has the right to carry out compulsory liquidation on the next trading day. This part of the margin that needs to be replenished is called additional margin. Still according to the above example, suppose that on the third day after the customer bought 50 tons of soybeans at a price of 2700 yuan/ton, the settlement price of soybeans fell to 2600 yuan/ton. Due to the sharp drop in prices, the floating loss of customers is 5000 yuan (that is,

The function of futures trading

1. Discovery price:

There are many people who participate in futures trading, and they all trade at the price they think is the most suitable. Therefore, futures prices can comprehensively reflect the expectations of both supply and demand for the relationship between supply and demand and price trends in a certain period of time in the future. This kind of price information increases the transparency of the market and helps to improve the efficiency of resource allocation. The domestic prices of copper in Shanghai Commodity Exchange and soybeans in Dalian Futures Exchange are the industry guidance prices at home and abroad.

2. Avoid price risk:

In the actual production and operation process, in order to avoid rising costs or falling profits caused by changing commodity prices, futures trading can be used for hedging, that is, buying or selling futures contracts with the same quantity but opposite trading directions in the futures market, so that the gains and losses of futures market trading can offset each other. Lock in the production cost or commodity sales price of the enterprise, maintain the established profit and avoid the price risk.

Futures is also an investment tool. Because the futures contract price fluctuates, traders can use the price difference to earn risk profits.

take for example

In July 1, the spot price of soybean was 2040 yuan/ton, and the processor in a certain place was satisfied with the price. In order to avoid the possible increase of spot price and raw material cost in the future, it is decided to conduct soybean futures trading in Dalian Commodity Exchange. At this time, the September contract price of soybean futures is 20 10 yuan/ton. Then, the processor bought 65,438+00 lots (65,438+000 tons) of September soybean contracts in the futures market. On August 1 day, he bought 100 tons of soybeans in the spot market at a price of 2080 yuan/ton, and sold 10 lots (100 tons) of soybeans in the futures market at a price of 2050 yuan/ton. The transaction is as follows:

July 1 spot market soybean price is 2040 yuan/ton. The futures market bought the soybean contract 10 lot in September: the price was 20 10 yuan/ton.

In August, I bought 100 tons of soybeans: the price was 2080 yuan/ton, and in September, I sold 10 lots of soybeans: the price was 2050 yuan/ton.

Hedging result: the spot market loses 40 yuan/ton and the futures market gains 40 yuan/ton.

Loss in the spot market (2080-2040)* 100=4000

Earn in the futures market (2050-2010) *100 = 4000.

The money lost in the spot market will be earned back in the futures market! Fixed production cost