The position limit system is a system for futures exchanges to prevent excessive concentration of market risks on a few traders, prevent market manipulation and limit the number of positions held by members and customers. Specifies the maximum amount of contract positions that members or customers can hold, which is calculated unilaterally, and too many positions are not allowed.

The original intention of warehouse limit is to stipulate the transaction scale of members according to their ability to take risks. The exchange usually gives a certain position limit according to a certain proportion according to the amount of margin invested by customers and members, which is the highest position held by members and customers in the transaction. When a customer conducts futures trading, he must open an account with a broker, and at the same time, deposits received.

Extended data:

The number of customers for speculative trading. The unilateral position limit of the contract is 100 lots. The customer number positions of hedging and arbitrage transactions shall be implemented in accordance with the relevant regulations of the Exchange, and are not limited by the 100 lot position limit.

If the total unilateral position of a contract exceeds 6,543,800 lots after settlement, the unilateral position of the settlement member in the next trading day shall not exceed 25% of the total unilateral position of the contract.

In order to prevent large households from holding too many positions and manipulating the market, most exchange members manage the customers represented by members, and each customer can only use one trading code. The exchange also limits the total number of positions held under each customer code.

Baidu Encyclopedia-Warehouse Restriction System