1. If the seller breaches the contract, the buyer can make one of the following choices.
(1) Termination of delivery: the exchange will refund the buyer's payment;
(2) Continued delivery: The Exchange will issue a standard warehouse receipt purchase announcement on the next trading day when the seller is judged to be in default, and organize the purchase within seven trading days. If the purchase is successful, the exchange will pay the standard warehouse receipt to the buyer; If the purchase fails, the seller shall pay the buyer compensation of 15% of the amount of the contract in breach, and the exchange will return the payment to the buyer and terminate the delivery. The seller shall bear all economic losses and expenses arising from the purchase.
2. If the buyer breaches the contract, the seller can make one of the following choices.
(1) Termination of delivery: the exchange returns the seller's standard warehouse receipt;
(2) Continued delivery: The Exchange will issue an auction announcement of standard warehouse receipts on the next trading day when the buyer is judged to be in default, and organize the auction within seven trading days. If the auction is successful, the exchange will pay the delivery fee to the seller; If the auction fails, the buyer will pay compensation of 15% of the contract amount to the seller, and the exchange will terminate the delivery after returning the seller's standard warehouse receipt, and the buyer will bear all economic losses and expenses arising from the auction.
If the buyer and seller breach the contract, the other party chooses to terminate the delivery. After the delivery is terminated, the exchange's delivery guarantee liability shall be settled.
If the buyer and the seller breach the contract, the exchange will terminate the delivery and impose a fine of 5% of the contract amount in breach.
When a member defaults on partial delivery, the standard warehouse receipt or payment received by the defaulting member can be used for default treatment. If a member intentionally breaches the contract in the physical delivery, it shall be handled in accordance with the relevant provisions of the Measures for Handling Violations of Shanghai Futures Exchange. The breaching party and the designated delivery warehouse are obliged to provide evidence related to the breach of contract. If a member refuses to provide evidence, it will not affect the determination of the facts of breach of contract.
Characteristics of futures trading
bidirectional
One of the biggest differences between futures trading and stock market is that futures can be traded in both directions, and futures can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and buy low. Going long can make money, and shorting can also make money, so there is no bear market in futures. In a bear market, the stock market will be suppressed, while the futures market will remain unchanged and opportunities will still exist. )
low cost
Futures trading countries do not levy stamp duty and other taxes, and the only cost is the transaction fee. The procedures of the three domestic exchanges are about two ten thousandths or three ten thousandths, plus the additional fees of brokers, and the unilateral handling fee is less than one thousandth of the transaction amount. Low cost is the guarantee of success.
lever action
Leverage principle is the charm of futures investment. Futures market transactions do not need to pay all the funds, and domestic futures transactions only need to pay 5% margin to obtain future trading rights. Due to the use of margin, the original market has been enlarged ten times. Assuming that the daily limit of copper price closes on a certain day (the daily limit in futures is only 3% of the settlement price of the previous trading day), the operation is correct. The return on capital is as high as 60%(3%÷5%), which is six times the daily limit of the stock market. (You can make money only if you have the opportunity)
Double the opportunity
Futures is a "T+0" transaction, which makes your capital use to the extreme. After grasping the trend, you can close your position at any time. (Convenient access can increase the security of investment)
Greater than negative market
Futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction costs of capital entry and exit, the total amount of funds in the futures market remains unchanged, and the profits of market participants come from the losses of another trader. The stock market has entered a bear market, the market price has shrunk dramatically, the dividends are meager, the state and enterprises absorb funds, and there is no short-selling mechanism. The total amount of funds in the stock market will show negative growth for a period of time, and the total profit is less than the loss. (Zero is always greater than a negative number)
The comprehensive policy of the country, the needs of economic development and the characteristics of futures all determine that futures have huge development space. The full name of stock index futures is stock price index futures, which can also be called stock index futures and futures index. Refers to the standardized futures contract with the stock index as the target. The two sides agreed to buy and sell the underlying index on a specific date in the future according to the size of the stock index determined in advance. As a type of futures trading, stock index futures trading has basically the same characteristics and processes as ordinary commodity futures trading.