(2) Debt-free day settlement system
The exchange implements the debt-free settlement system on the same day (also known as the daily mark-to-market system). The debt-free settlement system of the day refers to the exchange's settlement of profits and losses, trading deposits and handling fees of all contracts at the settlement price of the day after the closing of each trading day, and the net transfer of accounts receivable and payable.
(3) How did the settlement price come from?
Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Futures Exchange and Shanghai International Energy Exchange Center stipulate that the settlement price of the day refers to the weighted average price of the transaction price of a futures contract according to the volume.
According to China Financial Futures Exchange, the settlement price of the day refers to the weighted average price of the transaction price in the last hour of a futures contract according to the volume. The settlement price for delivery is based on the arithmetic average price of the last two hours of the last trading day of the underlying index.
(4) the role of the settlement price:
(1) After the close of each trading day, it is the basis for the trading margin of the open contract on that day and the settlement of the mark-to-market profit and loss on that day;
② It is the benchmark price for calculating the price of the price limit of the next trading day;
③ The settlement price is the benchmark price for futures contract settlement.
To sum up, futures are settled at the settlement price rather than the simple closing price, and the most important factor is to control the market risk. Because futures are leveraged transactions, a price change of 1% may bring profit and loss results with leverage multiple as multiplier. In order to prevent the excessive impact of prices on the market or malicious manipulation of the market under special circumstances, the weighted average price is used as the settlement price.