Before we understand the trading rules of commodity futures, we have a certain understanding of futures. Compared with general spot trading, futures trading has its own distinct characteristics. Futures trading is a financial product that is traded centrally in the futures trading market. There are strict restrictions on trading objects, trading time and trading space. The object of futures trading is quasi-contract.

Characteristics of futures trading rules

Contract standardization

Futures trading is carried out by buying and selling futures contracts. The standardization of futures contracts means that all the terms of futures contracts are stipulated by futures exchanges in advance, except the price. The standardized contract of futures trading brings many benefits to trading, saves trading time and avoids unnecessary contradictions.

Concentration of transactions

Futures trading must be conducted in the futures exchange, which implements the membership system, and only members can enter the market for trading. If you want to participate in futures trading, such as entering the futures trading market, this market has a strict organization and is very strict with the managed market.

After understanding what commodity futures are, we should carefully understand the trading rules of commodity futures, which has an important impact on how to do commodity futures well. Detailed business rules for commodity futures are as follows:

1. Daily settlement rules After the daily business is over, the business office will settle all contract profits and losses, business deposits, handling fees, taxes and other expenses according to the settlement price of the day.

2. Rules for forced closure. When the business margin of a member or customer is insufficient and cannot be replenished within the specified time, or when the position of the member or customer exceeds the specified limit, or when the member or customer violates the rules, the business office implements a compulsory liquidation system to prevent the risk from further expanding.

3. Margin rules In the futures business, any businessman must pay a certain proportion of the value of the futures contract (usually 5- 10%) as a financial guarantee for his performance of the futures contract.

4. The price fluctuation of a futures contract within a trading day shall not be higher or lower than the regular fluctuation, and the quotation exceeding the fluctuation shall be deemed invalid.

5. Rules of Position Quota Futures business limits the number of members and customers who hold positions, so as to prevent manipulation of market prices and excessive exposure of futures market risks to a few investors.

Everyone should know the rules and characteristics of commodity futures trading. Want to know more about investment knowledge, please pay attention to us!