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What are the risk management systems of glass futures?
Risk management of glass futures

There are six kinds of systems, namely, margin system, price limit system, position limit system, large household reporting system, compulsory liquidation system and risk warning system.

(A) the deposit system

The minimum trading margin standard for glass futures contracts is 6% of the futures contract value.

According to the different time periods of glass futures contracts in "general month", "one month before delivery month" and "delivery month", the exchange implements different proportions of trading margin standards.

(B) the price system

The price of glass futures contracts is limited to 4% of the settlement price of the previous trading day.

On the day when the new futures contract is listed, the price limit is twice the actual price limit of the futures contract.

(3) Warehouse restriction system

In glass futures trading, the speculative positions of futures company members, non-futures company members and customers are calculated unilaterally, and the position limit management system is implemented to control market risks.

There are three periods when glass futures contracts are listed and traded, namely, "general month" (one month before delivery month), "one month before delivery month" and "delivery month", which have unified regulations on the position restrictions of futures company members.

(D) extended family reporting system

Glass futures trading implements the bulk declaration system.

If the number of members or customers holding futures contracts reaches more than 80% (inclusive) of the position limit stipulated by the Exchange or the Exchange requires reporting, it shall report their funds and positions to the Exchange. According to the market risk situation, the exchange can adjust the level of position declaration.

A member of a futures company shall conduct a preliminary examination of the relevant materials provided by customers and ensure the authenticity of the report materials.

(5) compulsory liquidation system

Forced liquidation refers to the compulsory measures taken by the exchange to close the relevant futures contracts held by members and customers in violation of the relevant business regulations of the exchange.

(6) Risk early warning system

Futures trading implements a risk warning system.

Under any of the following circumstances, the Exchange may talk to the designated member executives or customers to remind them of the risks, issue a risk warning letter or ask the members or customers to report the situation, so as to warn and resolve the risks.