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What does a futures risk subsidiary do and what role does it play in the futures industry?
Mainly to provide personalized services for the market. For example, an institution needs to lock in the price of gold, signing a forward agreement is not flexible enough, and the margin required for gold hedging in the futures market is too high. At this time, you can cooperate with the futures risk subsidiary to carry out OTC options (buy call options), which is flexible and relatively cheap;

The existence of futures risk subsidiaries enriches the hedging channels and provides personalized hedging solutions for special market entities.