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Risk management of fuel oil futures
The risk management system of fuel oil futures includes fuel oil margin system, price limit system, position limit system, large household declaration system, forced liquidation system and other emergency measures when the price fluctuates greatly.

cash deposit

Trading margin refers to the funds occupied by the contract in the exchange account to ensure the performance of the contract. The minimum trading margin for fuel oil futures contracts is 8% of the contract value.

Upper or lower limit

Price limit refers to the maximum intraday price fluctuation allowed by futures contracts. Quotations exceeding this fluctuation range are considered invalid and cannot be traded. The fluctuation range of fuel oil futures contracts shall not exceed 5% of the settlement price of the previous trading day.

When the price fluctuates greatly

Take measures: increase the trading margin, limit the withdrawal of funds, suspend the opening of new positions, adjust the range of price limit, close positions within a time limit and force them to close positions. The adjusted price limit shall not exceed 20%.

Limited position

Limited positions refer to the maximum number of speculative positions that a member or customer can hold in a contract according to the regulations of the exchange. The Exchange classifies and manages the positions of hedging transactions and speculative transactions, and the positions of hedging transactions are not limited by the positions of speculative positions.

When the speculative position of the fuel oil futures trader's position contract reaches more than 80% (inclusive) of the speculative position limit stipulated by the exchange, the exchange will provide the trader with a big newspaper. If the risk situation intensifies, the exchange may adopt the system of compulsory liquidation.