cash deposit
initial
Initial margin is the money that traders need to pay when they open new positions. According to the transaction amount and the margin ratio, that is, initial margin = transaction amount * adjusted margin ratio. At present, the minimum margin ratio in China is 5% of the transaction amount, which is generally between 3% and 8% internationally. For example, the soybean margin ratio of Dalian Commodity Exchange is 5%. When a customer buys five soybean futures contracts (each 10 ton) at a price of 2,700 yuan/ton, he needs to pay an initial deposit of 6 750 yuan to the exchange (that is, 2,700× 5×10× 5%).
In the process of holding positions, traders will have floating profits and losses (the difference between settlement price and transaction price) due to the constant changes of market conditions, so the funds actually available in the margin account can be increased or decreased at any time. Floating profit will increase the balance of margin account, while floating loss will decrease the balance of margin account. The minimum balance that must be kept in the margin account is called maintenance margin. Maintenance margin: the settlement price is adjusted to the position, and the margin ratio is adjusted to xk(k is a constant, which is called the maintenance margin ratio, which is usually 0.75 in China).
increase
When the book balance of the margin is lower than the maintenance margin, the trader must replenish the margin within the specified time, so that the balance of the margin account is ≥ settlement price x position x margin ratio, otherwise the exchange or institution has the right to forcibly close the position on the next trading day. This part of the margin that needs to be replenished is called additional margin. Still according to the above example, suppose that on the third day after the customer bought 50 tons of soybeans at a price of 2700 yuan/ton, the settlement price of soybeans fell to the additional margin. 2600 yuan/ton. Due to the price drop, the customer lost 5000 yuan (that is, settled)
Refers to the settlement of the trading profits and losses of both parties according to the settlement price announced by the futures exchange.
transmit
It refers to the process that when a futures contract expires, according to the rules and procedures of the futures exchange, both parties to the transaction close the contract at the end of the period by transferring the ownership of the goods contained in the futures contract.
main feature
The commodity variety, trading unit, contract month, margin, quantity, quality, grade, delivery time and delivery place of futures contracts are all established and standardized, and the only variable is price. The standards of futures contracts are usually designed by futures exchanges and listed by national regulatory agencies.
Futures contracts are concluded under the organization of futures exchanges and have legal effect. Prices are generated through public bidding in the trading hall of the exchanges. Most foreign countries adopt public bidding, while our country adopts computer trading.
The performance of futures contracts is guaranteed by the exchange, and private transactions are not allowed.
Futures contracts can fulfill or cancel their contractual obligations through the settlement of spot or hedging transactions.
condition
Minimum fluctuation price: refers to the minimum fluctuation range of the unit price of futures contracts.
Maximum fluctuation limit of daily price: (also known as price limit) means that the trading price of futures contracts shall not be higher or lower than the prescribed price limit within a trading day, and the quotation exceeding this price limit will be deemed invalid and cannot be traded.
Delivery month of futures contract: refers to the delivery month stipulated in the contract.
Last trading day: refers to the last trading day when a futures contract is traded in the contract delivery month.
Futures contract trading unit "hand": Futures trading must be carried out in an integer multiple of "hand", and the number of commodities in each contract of different trading varieties should be specified in the futures contract of that variety.
Transaction price of futures contract: it is the value-added tax price of benchmark delivery goods of futures contract delivered in benchmark delivery warehouse. Contract transaction prices include opening price, closing price and settlement price.
If the buyer of a futures contract holds the contract until the expiration date, he is obliged to buy the subject matter corresponding to the futures contract; If the seller of a futures contract holds the contract until it expires, he is obliged to sell the subject matter corresponding to the futures contract (some futures contracts do not make physical delivery when they expire, but settle the difference, for example, the expiration of stock index futures means that the open futures contract is finally settled according to a certain average value of the spot index. Of course, traders of futures contracts can also choose to reverse the transaction before the contract expires to offset this obligation.