Margin system is one of the characteristics of the exchange, which means that in futures trading, any trader must pay a certain percentage (usually 5%- 10%) of the value of the futures contracts he buys and sells for settlement and guarantee performance. With the approval of China Securities Regulatory Commission, the Exchange can adjust the trading margin, and the purpose of adjusting the margin is to control risks.

2. Stop the system up and down

The price limit system, also known as the maximum daily price fluctuation limit, means that the trading price fluctuation of futures contracts in a trading day should not be higher or lower than the specified price fluctuation range. The price limit is generally determined according to the settlement price of the previous trading day of the contract.

3. Delivery system

Delivery refers to the process of transferring the ownership of the subject matter contained in the contract by both parties at the expiration of the contract according to the rules and procedures of the futures exchange, or settling the cash difference at the stipulated settlement price, and settling the contract at the end of the period.

4. Debt-free settlement system, of course

After the daily trading, the Exchange shall settle the profit and loss, trading margin, handling fees, taxes and other expenses of all contracts according to the settlement price of the day, and transfer accounts receivable and payable at the same time, so as to increase or decrease the settlement reserve of members accordingly. When the members of the futures exchange have insufficient margin, they shall add margin in time or close their positions on their own.

5. Position restriction system

The position limit system refers to the maximum amount of speculative positions in a contract that members or customers can hold according to the regulations of the exchange. The purpose of implementing the position limit system is to prevent the manipulation of market prices and prevent the futures market risks from being too concentrated on a few investors. The compulsory liquidation system is also one of the means for the exchange to control risks.

6. Compulsory liquidation system

The compulsory liquidation system refers to the compulsory liquidation measures taken by the exchange for relevant positions when members and investors violate the rules.

The main provision of the compulsory liquidation system in China's futures exchange is that when the balance of the member's settlement reserve is less than zero, it cannot be replenished within the prescribed time limit.

7. Extended family reporting system

The large household declaration system is another system closely related to the position limit system to prevent large households from manipulating market prices and control market risks. By implementing the large account reporting system, the exchange can focus on monitoring the members or investors who hold large positions and understand their positions trends and intentions, which has a positive effect on effectively preventing market risks.