Why do futures companies charge more margin on the basis of exchanges?
Mainly to control risks. The margin risk of the exchange must be controlled below 100%. Once it is higher than this standard, the margin of the account cannot be the same as that of the futures contract, and the available funds are negative. This situation shows that the exchange has paid us a part of the deposit. Our transactions, whether making money or losing money, are self-financing, and the exchange has no obligation to advance the deposit for us. So how will it be solved? Therefore, we often hear the word "forced liquidation", so all our transactions are forced liquidation systems.
The company increases a certain percentage of margin on the basis of the futures exchange to prevent investors from exceeding the standard. Once the loss margin to the exchange is too much, the futures company will also be inquired by the exchange. It is easier for ordinary investors to control risks according to the margin of futures companies. Of course, if customers have too many positions, too many positions, or too many losses, there will also be the risk of short positions, and they will also be forced by futures companies.
What is a futures margin?
Futures margin refers to a certain amount of funds or a certain amount of qualified securities deposited by futures clearing members in designated accounts according to the settlement rules as a guarantee for futures trading settlement and performance.
In the domestic commodity futures market, margin is called "initial margin", "original margin" and "opening margin". Opening margin refers to the margin calculated according to the opening price and the margin ratio charged by the futures company when the customer opens the position. Position margin refers to the margin dynamically calculated by the computer with the price fluctuation after the customer opens the position. This margin is the concept of opening margin for investors who have not yet opened the position or are about to open the position. Domestic futures companies generally stipulate that the margin charged by the exchange is a strong margin.
In the futures market, traders can pay a small amount of money according to a certain proportion of the price of futures contracts as financial guarantee for the performance of futures contracts and participate in the trading of futures contracts. This kind of money is the futures margin.