Futures trading shall implement the margin system. In futures trading, both buyers and sellers of futures must pay a deposit according to a certain proportion of the value of the futures contracts they buy and sell for settlement and performance guarantee.

What can be used as futures margin?

Generally speaking, the exchange settlement currency is RMB. With the consent of the Exchange, foreign exchange funds, standard warehouse receipts and book-entry treasury bonds issued by People's Republic of China (PRC) and the Ministry of Finance in China can be used as security deposits.

Is there a difference between the deposit charged during the meeting and the deposit charged at the time of settlement?

We will find that the margin for opening new positions in the market is often different from the settlement margin. Why? That's because the margin is calculated differently when customers open positions and settle accounts.

Futures opening margin = average opening price of the day × opening quantity × marketing unit × trading margin ratio.

Futures settlement margin = settlement price on the contract day × positions × trading unit × trading margin ratio.

For example:

During the trading day, the customer bought corn futures 10 lot in Dashang, with an average transaction price of 2980 yuan/ton, a settlement price of 3000 yuan/ton, a trading unit 10 ton/lot, and a trading margin ratio of 12%. How much opening margin do you charge customers for intraday trading? What is the customer's deposit at the time of settlement?

Futures opening margin = 2980×10×10×12% = 35760 yuan.

Futures settlement margin = 3000×10×10×12% = 36000 yuan.

Why does the margin ratio of futures trading change?

We will find that the futures trading margin ratio of the contract is not fixed, which will also lead to frequent changes in the customer margin. The adjustment of the margin ratio of futures trading mainly includes the following contents:

(1) futures contracts should be adjusted when there is a price limit.

If there is no continuous quotation for a contract on a certain trading day, the exchange will adjust the trading margin ratio of the contract at the time of settlement on that trading day, and the trading margin ratio of the contract on the next trading day will also be adjusted accordingly.

(2) Adjustment of futures contracts as they approach the delivery date.

The exchange will stipulate different trading margin ratios for different stages of the listing operation of futures contracts. Generally speaking, the proportion of trading margin will increase as the delivery date approaches.

(3) adjust to prevent risks near holidays.

Generally speaking, when holidays are approaching, especially the Spring Festival, May Day, National Day and other long holidays, in order to prevent risks, the exchange will adjust the trading margin ratio of certain futures varieties or contracts according to market conditions.

(4) Other circumstances requiring adjustment of the margin as stipulated by the Exchange.

When the market fluctuates greatly or some futures contracts are abnormal, the trading ownership will adjust the trading margin ratio according to the prescribed procedures.