Generally speaking, cotton futures contracts within one month adopt different trading margin ratios according to different positions. See the table below for details:

Average monthly trading margin ratio

Bilateral position (n ten thousand lots) N≤ 16 1630

Trading margin ratio is 7%9% 12% 18%

Two months before the delivery month and one month before the delivery month, cotton futures contracts adopt different trading margin ratios in the early, middle and late days respectively. See the table below for details:

The proportion of trading margin in the first two months of the delivery month (%) and the proportion of trading margin in the first month of the delivery month (%)

Morning and evening cotton, morning and evening cotton.

7% 10% 15%20%25%

If the positions of brokerage members, non-brokerage members and investors (including hedging and arbitrage positions) reach 15%, 10% and 5% respectively in the latest delivery month, the normal margin ratio will be increased by 5 percentage points.

At the time of settlement on the trading day before the delivery month, all members who hold the delivery month contract shall pay a trading deposit of 30% of the contract value.

At the time of settlement on the fifth trading day of the delivery month, a trading deposit of 50% of the contract amount shall be paid.

Whoever fails to pay the trading margin on time, the trading ownership will forcibly close the position of the monthly delivery contract held by him until the margin can maintain the current position level.

In the process of trading, when the position of a contract reaches a certain level of the total position, the newly opened contract will be charged according to the trading margin standard of that level. After the transaction, the exchange will collect the trading margin corresponding to the total position for all positions.

When the contract price change calculated at the settlement price in a month reaches 3 times of the price increase (decrease) stipulated in the contract for four consecutive trading days and 3.5 times of the price increase (decrease) stipulated in the contract for five consecutive trading days, the trading right will increase the trading margin for some or all members unilaterally or bilaterally, in the same proportion or in different proportions according to market conditions. The increase of the trading margin shall not be higher than 3 times of the trading margin agreed in the contract.

When the futures contract is abnormal, the exchange may adjust the trading margin ratio according to the prescribed procedures.

When the contract market risk of a product increases obviously in a certain month, the exchange may unilaterally or bilaterally increase the trading margin for some or all members and investors in the same proportion or in different proportions according to market conditions.

At the same time, if the provisions of these Measures on adjusting the trading margin are met, the trading margin shall be charged according to the larger value among the specified trading margin values.

2. Price limit system

When futures contracts are traded at the price limit, the principle of closing positions first and then timing is implemented.

When a futures contract has a buy (sell) declaration with a stop-loss price, a sell (buy) declaration without a stop-loss price, or a deal is made as soon as a sell (buy) declaration is made, but the stop-loss price is not offered within 5 minutes before the closing of the trading day, it is called a unilateral market without a stop-loss price (hereinafter referred to as a unilateral market).

If there is a unilateral market on a trading day, the trading margin ratio of the futures contract will be increased by 50% at the time of settlement on that day. The price range of the second trading day will automatically increase by 50% on the basis of the original price range (only in the stop direction).

If there is no unilateral market in the same direction on the second trading day, the price range and margin standard stipulated in the contract will be automatically restored on the third trading day; If there is a unilateral market in the same direction on the second trading day, the increased margin ratio will remain unchanged at the time of settlement on the same day and the next trading day, and the price range of the next trading day will remain the increased price range. If there is no unilateral market in the same direction on the third trading day, the price range and margin ratio stipulated in the contract will be implemented on the fourth trading day.

If there is a unilateral market in the same direction for three consecutive trading days, the exchange may close for one day and have the right to suspend the withdrawal of funds from some or all members.

According to the market situation, the firm can also choose to take the following measures to reduce risks:

Forced lightning. The exchange will declare all open positions with unit position loss greater than or equal to 7% of the settlement price of the trading day at the daily limit price, and automatically match the daily limit price with the profitable positions of the contract according to the prescribed ways and methods. Before compulsory lightening, investors (including investors who are not brokerage members and brokerage members) automatically hedge their positions.

If there is a settlement or delivery risk in the market, which is or will have a significant impact, the Exchange may decide and announce that it will choose to take unilateral or bilateral measures, such as raising the trading margin, suspending the opening of new positions by some members or all members, adjusting the ratio of price limit, restricting the withdrawal of funds, closing positions within a time limit, forcibly closing positions, delaying the delivery date and extending the delivery time, etc. , in order to resolve market risks, but the adjusted price limit ratio shall not exceed 20%. After the exchange announces the adjustment of the margin level, if the margin is insufficient, it shall make up for it within the specified time.

The specific operation method of forced lighting is as follows:

The number of compulsory positions reduction is the sum of all declared positions closed after the closing of the market on the day of compulsory positions reduction, and the unit position loss of investors (or non-brokerage members, the same below) in this contract is greater than or equal to 7% of the settlement price on the trading day. The Exchange will make compulsory lightening according to the principle of first declaration and first liquidation. When the investor's position is less than the amount reported in the closing order due to the automatic hedging of the investor's two-way position, the system will automatically adjust the closing position.

3. Limited warehouse system

Generally speaking, the exchange will limit the positions of cotton futures contracts in the current month according to broker members, non-broker members and investors respectively. The specific warehouse quota ratio and quantity are as follows:

The proportion or absolute amount of the largest unilateral position of cotton in general month to the total unilateral position (hand) in the market.

Brokerage member non-brokerage member investor

Unilateral positions of more than 80,000 lots and unilateral positions of less than 80,000 lots ≤15%12000 ≤10% 8000 ≤ 5% 4000.

One month before the delivery month, the exchange will restrict the unilateral positions of brokers, non-brokers and investors of cotton futures contracts, as well as the unilateral positions in the early, middle and late stages. The specific limited warehouse quantity is as follows:

Maximum unilateral position (hand) one month before the delivery month of varieties.

Brokerage member non-brokerage member investor

Morning, noon, evening, morning, evening, morning, evening.

Cotton 80004000200400020010002001000500.

In the delivery month, the Exchange will absolutely limit the positions of brokerage members, non-brokerage members and investors in the delivery month. The specific quantities are as follows:

Maximum unilateral position (hand) in the month of variety delivery.

Brokerage member non-brokerage member investor

Cotton 1000300 100

All positions held by all investors in the name of a brokerage member (long positions and short positions are calculated separately, the same below) shall not exceed the position limit of the member.

The total number of trading code positions held by the same investor in different brokerage members shall not exceed the position limit of one investor.