Is the futures margin fixed?
The margin of domestic futures is not fixed, and the margin of different futures varieties will be different, and the margin of futures at different times will be different, mainly because the risks of different varieties are different. The closer the futures are to the delivery date, the higher the risk will generally be.
Taking the Shanghai Stock Exchange as an example, the margin levels of different futures are as follows:
The minimum trading margin for gold, silver, petroleum asphalt, hot rolled coil and bleached kraft softwood pulp (hereinafter referred to as bleached softwood pulp) futures contracts is 4% of the contract value, while that for cathode copper (hereinafter referred to as copper), aluminum, zinc, lead, nickel, tin, rebar, stainless steel and natural rubber futures contracts is 5% of the contract value, and that for wire futures contracts is 7% of the contract value.
The margin level of futures will also be constantly adjusted. The basis for Shanghai Futures Exchange to adjust the margin is as follows:
(1) When the position reaches a certain level;
(2) When the delivery date is approaching;
(3) When the cumulative increase or decrease for several consecutive trading days reaches a certain level;
(4) When there are continuous ups and downs;
(five) in case of national holidays;
(6) The Exchange believes that the market risk has increased significantly.
(7) Other circumstances deemed necessary by the Exchange.
The above information comes from the Administrative Measures for Risk Control of Shanghai Futures Exchange (released on April 24, 2020).