Investors who want to trade futures must first understand what its trading system is when they first come into contact with futures. In other words, how to trade in the futures market. Today we will introduce the meaning of debt-free futures system.

What is the daily debt-free system of futures?

The daily debt-free futures system can also be called the daily mark-to-market system. In the process of futures trading, in order to ensure the performance of futures contracts and the good operation of the futures market, after the end of each trading day, the futures clearing institution needs to settle the profit and loss, trading margin, handling fees and taxes of the futures margin account on that day.

After the settlement every day, log in to your account at the margin monitoring center, and you can check it at the margin monitoring center around 5 or 6 pm that day. This statement will set out the details of each transaction very clearly.

All futures exchanges in China implement the debt-free system on the same day. When the margin is insufficient due to trading losses, the relevant members (clearing institutions) need to replenish the funds in the margin account within the specified time. Therefore, the debt-free settlement system controls the risk within a certain range, and even if we lose a part, we will not be in debt. However, I suggest that when you find that the margin is insufficient, you'd better replenish it within the specified time, otherwise you will be forced to close your position.