For example, the price of corn is 2000 per ton, and the deposit is 5%.
That is to say, the deposit per ton is 100 yuan, so both parties of AB have to pay the deposit of 100 million yuan.
Because if B has it and A has no money to buy it, A may also have corn.
What you need to know is hedging. What is hedging? In other words, there are many buyers and sellers in the trading place.
If B does not have the qualification and ability of physical delivery, then he can hedge the contract in his opponent before the contract expires.
For example, after three months, B sells 1000 tons of corn, and after two months, B buys 100 tons of corn 1 month. Then, B's obligation, in turn, is gone.
A can also close the position in this way.
In addition, it is necessary for you to understand that not everyone can qualify for physical delivery.
First of all, you should have a seat, a member seat, you must be a member of the exchange, even a member may not be qualified for physical delivery, as well as registered warehouse receipts and so on.
Fourth: There are about three items mentioned above, and now it is the fourth item. All contracts will increase the margin before delivery, and gradually increase it, for example, 5% at the earliest, and then increase it by 20% when 10% is closer, so as to prevent those who fail in the final delivery from holding positions, causing troubles and risks. The risk control personnel of the futures company will also remind you to close your position.
Fifth, the exchange itself has a certain risk control mechanism, which will make you close your position.
Tell a digression:
I read in a book earlier that corn was pulled out beyond the limit of 10. It is said that a big boss spent 200 million on futures. Many years ago, 200 million yuan was a very strong and main force in the futures market, and he could completely control the market. At that time, this guy held a long position, betting on corn rising, only to find that the result was about to expire. He didn't have that much money to deliver and accept physical corn, so he desperately closed his position. Because of the delivery, he pulled out a lot of limit.
Well, I suspect that this story is false and somewhat contradictory.