Historically, futures trading has been conducted in the trading hall through oral bidding by traders. Most futures trading is done through electronic trading. When trading, investors input buying and selling orders through the computer system of the futures company, and the matching system of the exchange conducts matching transactions.

When buying and selling futures contracts, both parties need to pay a small sum of money to the clearing house as a performance bond, which is called a deposit. Buying a contract for the first time is called building a long position, and selling a contract for the first time is called building a short position. Then, the contract at hand should be settled daily, that is, the market should be marked daily.

You don't have to hold a trading position until it expires. You can reverse trade at any time before the expiration of the stock index futures contract to reverse the original position. This kind of transaction is called liquidation. For example, stock index futures contracts sell 10 on the first day and buy back 10 on the second day. Then the first one is the short position of opening 10 stock index futures, and the second one is the short position of closing 10 stock index futures. The next day I bought 20 lots of stock index futures contracts, and then I became a long position in 20 lots of stock index futures. Then sell 10 lots, which is called liquidation 10 stock index futures bulls, leaving 10 stock index futures bulls. A contract that is not closed at the end of a day's trading is called a position. In this example, on the first day after trading, the stock index futures with the position of 10 are short, and on the second day after trading, the stock index futures with the position of 10 are long.

To close/close/close an account

The settlement of stock index futures can be roughly divided into two levels: first, the clearing house or the settlement department of the exchange settles the members, and then the members settle the investors. No matter what level, you need to do three things:

(1) Transaction processing and position management, that is, after trading every day, it is necessary to register what transactions have been made and what positions are held.

(2) Financial management is to settle the profit and loss of positions every day, with the profit part returning the deposit and the loss part recovering the deposit.

(three) risk management, that is, to assess the risk of the settlement object and calculate the deposit.

transmit

Stock index futures contracts, like other futures, need to be delivered at maturity. However, general commodity futures, treasury bonds futures and foreign exchange futures are delivered in kind, while stock index futures and short-term interest rate futures are delivered in cash. The so-called cash delivery means that there is no need to deliver a basket of stock index components, but the spot index on the maturity date or the next day is used as the final settlement price, and the position is closed through profit and loss settlement at the final settlement price.

service charge

The handling fee of stock index futures can be understood as the commission in the stock. Stock index futures commission refers to the fees paid by futures traders according to a certain proportion of the total contract value after trading futures.

All futures brokerage companies are members of the exchange (financial exchanges are not), and a fixed part of the handling fee for participating in futures trading is paid to the exchange, and the other part is collected by futures companies. The standard for charging futures companies is to add a part to the futures exchange for its own operation.

The handling fee will also vary according to the amount of customer funds. For customers with large funds or even millions, the futures company will reduce the handling fee accordingly.

Trading rules

The first point is to regard the market as a stock index. Since the stock index futures, what has the stock become? The stock has become a spot. Stocks are stocks, and stock indexes are futures. We do commodities, so the copper in the market is in stock, and I am here to do futures. Soybeans are in stock and futures are traded here. With the stock index, stocks are our spot. Futures have two main functions, the first is to avoid risks, and the second is to find prices. Hedging is the main way to avoid risks, and there will be many ways. The main research of firm trading. Let's have a look. Futures guide spot, and spot promotes futures. A simple inference from this sentence is that the stock index guides the market and the market pushes the stock index. When we were trading, State Street Investment reminded us that the stock index had gone up and the general direction was the same. There is no doubt that it will develop in the same direction. It is said that in a minute or two, the stock index will guide the market. When you can't see its direction, you can just look at the stock index, which will tell you how to go.