If a company customer or a self-operated member of the exchange applies for a hedging position, it is necessary to provide the exchange with relevant written materials such as production plan, purchase and sale contract, and give the hedging amount (position amount) after approval by the trading department.
This limit is not limited by the change of position limit and margin ratio. For example, the position of a product to corporate customers is limited to 2000 lots in non-delivery months, and the hedging index (position) is not included. In addition, if the exchange increases the margin ratio when the market changes sharply, the margin ratio of the hedging position is still calculated according to the minimum margin ratio.
In addition, the hedging position index can open positions in batches until the quota is reached, but it must be closed or delivered at one time. If only some positions are closed at the close, the exchange will close the remaining hedging positions.
In addition, the hedging position indicator can only be used once. If hedging is needed again, you need to apply for the position indicator separately.