(2) Futures trading margin provides financial guarantee for the performance of futures contracts. The margin system can ensure that every transaction and every position in all accounts has funds that are suitable for the risks faced, and the profits and losses that occur in the transaction are constantly dealt with accordingly, thus putting an end to the debt phenomenon. Therefore, the strict implementation of this system provides a safe and reliable guarantee for the performance of futures contracts.
(3) Margin is an important means for the exchange to control the scale of speculation. Speculators and speculative activities are the lubricants of the futures market, but excessive speculation will increase the risk of midfield and be conducive to the stable operation of the futures money market. When speculation is excessive, the market cost can be increased by raising the margin, thus curbing speculation and controlling the scale and risk of the transaction. On the contrary, when the futures market is depressed and the trading scale is too small, we can attract more market participants and enliven the trading atmosphere by appropriately lowering the margin.
In the futures market, traders can pay a small amount of money according to a certain proportion of the price of futures contracts as financial guarantee for the performance of futures contracts and participate in the trading of futures contracts. This kind of money is the futures margin.
In China, futures margin (hereinafter referred to as margin) varies according to its nature and function. It can be divided into two categories: settlement reserve and trading margin. Settlement reserve is generally paid by member units to the exchange according to fixed standards, and prepared in advance for transaction settlement. Trading margin refers to the actual margin paid by member companies or customers for holding futures contracts in futures trading, which is divided into initial margin and additional margin.
Initial margin is the money that traders need to pay when they open new positions. According to the transaction amount and margin ratio, that is, initial margin = transaction amount and margin ratio.