In the futures market, there are still many investors. What does the position limit mean? If the limit is exceeded, what should I do and will there be penalties? Let's take a quick look.

What does the position limit mean?

There are relevant regulations on the position limit. According to the regulations of the trading market, the number of objects held by investors in the market is limited. In the futures market, there is a relevant quota system, which stipulates that customers or members hold the maximum quota of a variety and unilaterally calculate the speculative position of a certain variety.

According to the stock index futures contract, CICC has the following provisions on the position limits of customers and members:

The absolute number of positions is limited, and the number of unilateral positions held by a contract customer is limited to 600 lots;

Implement an absolute limit on positions. For trading members with self-operated business, the limit of unilateral contract positions is 600 lots;

For the number of unilateral contracts with total positions exceeding 654.38+10,000, the unilateral positions of members shall not exceed one quarter, that is, 25%.

There are also investors who are not restricted by the above regulations, and customers and members who are approved for naughty hedging quotas are not restricted. If the position limit is reached or exceeded, member customers cannot open positions in the same direction.

For copper futures, for ordinary investors, the position limit on the last trading day is 8000, the month before the delivery month is 3000, and the delivery month is 1000.

What should investors do if they exceed the position limit?

What if I exceed the position limit?

When all transactions exceed the limit, the members of the futures company where the investor is located will be notified by the exchange to close their positions on their own at the close of the day. If the liquidation is not completed on the first trading day of the second trading day, the exchange will force the liquidation, and the opening authority of the account is limited, and the opening time is limited to more than one month in principle.

It is suggested that over-limit investors complete the liquidation within the specified time to avoid the embarrassing situation of limited trading authority and affect subsequent transactions. At the same time, if you are forced to close your position, it is likely to be blacklisted, which will affect your personal integrity.

Therefore, exceeding the position limit is actually similar to the temporary credit card limit. If you fail to apply within the specified time period, or frequently open or close positions, especially for investors who apply for hedging purposes, you need to open or close positions. Otherwise, there will be forced liquidation, and you need to bear certain consequences.

I hope that the introduction of the relevant content of position restriction will be helpful to everyone. If there are relevant position regulations, you still need to pay more attention when buying to avoid bringing unnecessary risks to yourself later.

Seeing this, everyone should know what the position limit means. Want to know more about investment knowledge, please pay attention to us!