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How are futures traded?
Futures traders enter and open accounts in brokerage companies, including signing power of attorney to authorize brokerage companies to buy and sell contracts and pay handling fees on their behalf. After being authorized, the brokerage company can handle futures trading according to the terms of the contract and the customer's indicators.

When trading futures for the first time, you can choose to buy futures contracts or sell futures contracts first. Among them, the futures contracts bought are called bulls, those who buy futures contracts are called bulls, those who sell futures contracts are called shorts, and those who sell futures contracts are called shorts. Usually when we say "short" and "long", we also mean the direction of buying and selling. Buying and selling futures contracts for the first time is also called opening or holding positions.

When buying and selling futures contracts, both long and short parties need to pay a sum of money to the settlement institution of the exchange as a performance bond through the futures company. This money is a proportion of the value of the purchased futures contract (for example, 10%), which is called margin. In addition to the deposit, you need to pay certain transaction fees and other expenses, but you don't need to pay all the funds of the contract value.

From the beginning of holding futures contracts, whether holding long positions or short positions, daily settlement should be carried out in accordance with the regulations of the exchange. The price of futures contracts changes every day. At the close, according to the settlement price of the day, if my book interest is earned and I haven't closed my position, it means that I have paid more margin, and the futures company where I opened the account will calculate the excess and transfer it to my subsidiary account.

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