Traditional Culture Encyclopedia - Traditional festivals - Seeking some concepts of futures. What is a futures contract, futures trading,

Seeking some concepts of futures. What is a futures contract, futures trading,

1. Futures: A form of buying and selling standardized contracts on a futures exchange.

2. Closing a position: buying and then selling, or selling and then buying to settle a new order originally made.

3. Split Position: A member of an exchange or a customer who, in order to hold an excessive position to influence prices and manipulate the market, borrows another member's seat or another customer's name to engage in futures trading on the exchange, circumventing the exchange's position limitations, and whose total position in each seat exceeds the exchange's position limitations for that customer or member.

4. Position shifting (reversal): the behavior of an exchange member who, in order to create a market illusion or to transfer profits, transfers positions from one seat to another.

5. Fulfillment: The action taken when a call option holder wishes to buy an underlying futures contract or when a put option holder wishes to sell an underlying futures contract.

6. Gap: The difference in price between grades, grades and different delivery points for the same commodity.

7. Commission: The fee charged by a brokerage firm for executing a trade for a client.

8. Position: the number of buy and sell contracts held in a transaction.

9. Long: call buying.

10. Short: sell bearish.

11. Shorting mechanism: that the price is going to fall, you can pre-pay a 10% deposit from a third person to borrow the goods sold, to be closed in the buy back to the third person, will be paid in the way of the deposit back.

12. Favorable: favorable to the general trend up.

13. Positive: favorable to the general trend down.

14. Trend: the direction of the market.

15. Negative candle: a unit of time in which the opening price is higher than the closing price.

16. Positive candle: the closing price is higher than the opening price per unit of time.

17. Short Jump: also known as gap, an area of price fluctuations in which there is no trading.

18. Basis difference: the difference between the prices of different or the same species in different contracts or markets.

19. Forced Position: futures exchange members or customers to take advantage of the capital advantage, through the control of futures trading positions or monopoly of spot commodities available for delivery, intentionally raising or lowering the futures market price, excess positions, delivery, forcing the other side of the default or unfavorable prices to close the position in order to profiteering behavior. According to the different operational techniques, can be divided into "more forced short" and "empty forced more" two ways.

20. Hitting: exchange members or customers in order to create market illusion, attempts or actual serious impact on futures prices or market positions, deliberate collusion, according to the pre-agreed way or price of trading or mutual trading behavior.

21. Open position: the beginning of the purchase or sale of futures contracts trading behavior is called "open position" or "establish a trading position.

22. Closing a position: buy and sell, or sell and buy to settle a new order originally made. Traders to close the hands of the contract to reverse the behavior of the transaction is called "close" or "hedge".

23. Settlement: According to the results of the transaction and the relevant provisions of the exchange members of the trading margin, profit and loss, handling fees, delivery loans and other related payments for the calculation, transfer.

24. Position: traders hold contracts in the hands called "position".

25. Premium: 1) the exchange regulations allow, for commodities higher than the standard delivery of futures contracts to pay an additional fee. 2) refers to the price of a commodity between the different delivery month relationship. When the price of one month is higher than the price of another month, we call the higher-priced month to the lower-priced month of the water. 3) When a security is traded at a price higher than the nominal value of the security, also known as the water or premium.

26. delivery: futures contract seller and futures contract buyer between the spot commodity transfer. Each exchange on the spot commodity delivery are stipulated in the specific steps. Certain futures contracts, such as stock index contracts, the delivery of cash settlement.

27. Long: believe that the price will rise and buy futures contracts called "short" or "long", that is, long trading.

28. Short: bearish prices and sell futures contracts called "short selling" or "short", also known as short trades.

29. Arbitrage: speculators or hedgers can use a trading technique, that is, in a market to buy spot or futures commodities, at the same time in another market to sell the same or similar commodities, and hope that the two transactions will produce a price difference and profit.

30. bull market: a market that is in a period of rising prices.

31. Bear market: a market during a period of falling prices.

32. Settlement: refers to the results of transactions and the relevant provisions of the Exchange on the members of the trading margin, profit and loss, fees, delivery of goods and other related payments for calculation, transfer of business activities.

33. Single number: the system for the commission order or transaction orders assigned a unique identification.

34. volatility: the calculation method used to measure the price change in a certain period. Usually expressed in percentage points, and the annual standard deviation of daily price changes in percentage points to calculate.

35. Stop: The maximum price fluctuation (range) set by the exchange for each contract on a day-to-day basis.

36. Spread: the difference in price between two related markets or commodities.

37. Pledge: refers to the application and approval by the Exchange, the member will hold the right certificate transferred to the Exchange's possession, as a security for the fulfillment of its obligations to the trading margin. The pledge of right certificates is limited to the trading margin, but losses, fees, taxes and other payments must be settled in monetary funds.

38. Stop-loss: when the position held in the opposite direction to the market development, in order to protect its interests and a means of protection.

39. Increase: generally refers to the original position in the state of vitality, increase the new position to expand the profitability of a method of operation.

40. Reduction of pounds: generally refers to the original position in the state of vitality in order to protect the profitability, according to the state of the market to end part of the profitability of a practice.

41. Retracement: a small decline in the uptrend.

42. Rally: an emulative rise in a downtrend.

43. spot volume: the number of contracts traded at the latest price.

44. consolidation: a narrow range of prices within a certain range.

45. support: the low point of an upward rebound is called support.

46. Block: the high of a downward retracement is called a block.

47. Patterns: price ranges formed by multiple supports and blocks overlapping each other.

48. Breakout: the price rushed through the support and block or a technical level, generally regarded as a signal to buy or sell.

49. Divergence: when the price and other technical indicators appear abnormal with the relationship. There are volume and price divergence and indicator divergence.

50. Golden Cross: averages or indicators of short-term line up through the long-term line to form a cross.

51. Dead Cross: averages or indicators appear short-term line down through the long-term line to form a cross.

52. Options: Also known as options, options trading is actually the buying and selling of a right. This right refers to the investor can be in a certain period of time at any time, in order to pre-determined prices (known as the price of agreement), to the seller of the option to buy or sell a certain amount of a certain "commodity", regardless of how the price of the "commodity" during this period of time how to change. The option contract specifies the term, the agreed price, the quantity to be traded, the type of option, etc. During the term, the buyer can buy or sell a certain quantity of a "commodity". During the term, the buyer is free to exercise the right to resell; if the buyer considers it unfavorable, he can give up this right; after the specified period, the contract will be invalidated and the buyer's option will be automatically invalidated. There are call options and put options.

53. speculator: a market participant who employs methods of predicting future price movements and attempts to profit by buying and selling futures and options contracts.

54. Charting: The use of charts to analyze market behavior and anticipate future market price trends. Technical analysts use charting to calculate highs, lows, settlement prices, average price movements, trading volume and short sales. The two basic forms of price charts are bar charts and point charts.

55. Turnover: the day's turnover bath positions in contrast to the relationship between the greater the turnover rate indicates that the day's trading about active.

56. Opening volume: no matter buy or sell orders, as long as the volume of new single entry transaction.

57. Closing volume: whether buy or sell orders, as long as the amount of closed orders into the field of transactions.

58. Commission price: the price at which the buyer wants to buy but did not fulfill.

59. Commission selling price: the seller wants to sell at this price but did not fulfill the price.

60. bar chart: a certain period of time to indicate the high, low and settlement price of a trading session of the graph.

61.K chart: also called candlestick chart. That is, one by one record of the opening price per unit of time, the highest price, the lowest price, the closing price.

62. Doji: the opening and closing prices per unit of time are equal.

63. Upper Shadow: the line between the highest price and the body of the candle per unit of time.

64. Lower Shadow: the line between the lowest price and the body of the candle per unit of time.

65. Trend line: the line that will be the sequential high or low.

66. Empty to force more: market manipulators use financial or physical advantage, in the futures market to sell a large number of a futures contract, so that it has a short position greatly exceeds the ability of the majority of the ability to take physical. Thus, the futures market prices fell sharply, forcing speculative long to sell at a low price to hold the contract to recognize the loss out, or out of the strength of the funds to take over the goods and subject to default penalties, so as to profiteer.

67. More than forced short: in some small varieties of futures trading, when market manipulation is expected to be available for delivery of the spot commodity shortage, that is, by virtue of the capital advantage of the futures market to establish enough long positions to pull up the futures price, at the same time, a large number of acquisitions and hoarding can be used for delivery of physical goods, so the spot market prices at the same time higher. So when the contract is close to delivery, the chase makes short members and customers either buy back futures contracts at a high price to close out the position; or buy spot at a high price for physical delivery, or even because of the inability to deliver the physical and be fined for breach of contract, so that the long position holders can profiteer from it.

68. Settlement date: According to the Chicago Board of Trade, the settlement date is the third day of the delivery process. The contract buyer's clearing house must deliver a notice of delivery to the contract seller's clearing house's office on the delivery date, along with a fully insured check.

69. Margin: Sometimes referred to as deposit. In margin trading, buyers and sellers are required to pay a small deposit to the broker. The purpose of the margin is twofold: (1) to protect the interests of the brokerage house, when the customer can not pay for any reason, the brokerage house will be compensated by the margin. (2) In order to control the exchange of speculative activities. Under normal circumstances, the margin is about 10% of the total value of the traded contract. In essence, margin is a sum of money paid by the trader to the commodity clearing house through the broker, without any interest, to ensure that the trader has the ability to pay commissions and possible losses. However, trading margin is by no means a deposit to buy or sell futures.

70. Volume: The number of commodity futures contracts bought or sold at a given time. Volume usually refers to the number of contracts traded per trading day.

71. Short volume: the total number of futures or options contracts on a commodity that have not yet been hedged by the opposite futures or options contracts, nor physical delivery or fulfillment of options contracts.

72. Up or down: the spread between the day's closing price and yesterday's settlement price of a commodity.

73. weighted volume: the parameter involved in the exchange's calculation of the settlement price.

74. closed volume: the number of positions closed in each transaction.

75. Open Positions: the number of new positions opened in each transaction.

76. Settlement price: the day the weighted average price of all traded contracts of a commodity.

77. Total Position: the total number of open contracts. A commodity futures or options contracts that have not yet been offset by opposite futures or options contracts, nor physical delivery or fulfillment of options contracts.

78. Volume: the number of commodity futures contracts bought or sold at a given time, usually the number of contracts traded on a trading day.

79. Support level: The absorption of a contract, making it difficult for the price to fall below a certain price level.

80. Resistance: a price level that is difficult for the price to exceed.

81. Transaction price: the price of a futures contract transaction.

82. Latest price: the latest price of a commodity currently traded.

83. Minimum price: the lowest traded price of a commodity within a certain period of time.

84. Maximum price: the highest price of a commodity within a certain period of time.

85. Closing price: the last transaction price of a commodity on the day.

86. Opening price: the day of the first transaction price of a commodity.

87. Yesterday's closing price: the last transaction price of the previous trading day.

88. transaction orders: computerized matching generated by the purchase and sale of contract orders.

89. Positions: the number of open positions of a commodity in the market where transactions occur.

90. Commission order: the market representative of the purchase and sale of commodities through the computer terminal input order.

91. Hat grabbers: day trading only, in order to take advantage of small, short-term contract spreads for the purpose of profit traders. Such traders rarely keep the hands of short positions until the next trading day to close the position.

92. Resumption of trading: those futures and options contracts on the Chicago Board of Trade evening trading session in the morning of the next trading day to reopen trading.

93. Purchase and Sale List: A list sent by a commission house to a customer when there is a change in the customer's futures or options position, including the number of contracts purchased and sold, the price level, the total profit and loss, commission charges and net profit and loss on trading activities.

94. Chain: The ability to buy (sell) contracts on one exchange and subsequently sell (buy) those contracts on another exchange.

95. Market order: one of the forms of trading orders. That is, in accordance with the market at the time of the best price immediately (as soon as possible) to buy (sell) a particular delivery month futures contract instructions.

96. Inverted market: refers to the same commodity, the relationship between the two delivery month anomaly in the futures market.

97. That is, the market transaction: buy before sell or sell before buy are in the day after the market opens before the close of the transaction is completed. Also called T + 0 trading, short-term trading.

98. Over the market transactions: after opening a position on the day did not close the position and stay in the position, to be closed later to close the position of the transaction.

99. Two-way trading: is relative to the one-way market, such as the stock market can only have a direction to profit, in the futures market that can be bought at a low level and sold at a high level to profit can also be sold at a high level first and then buy at a low level to profit.

100.Conformity trading: trading in the direction of the market.

101. Countertrend trading: trading in the opposite direction of the market.

102. Profit-taking: profit-taking. Refers to the buyer or seller of the profit position closed.

103. uptrend: upward peaks and valleys.

104. Downtrend: sequential downward peaks and valleys.

105. Forced liquidation: When a customer trades at a loss to the extent that margin is insufficient, and the customer does not make up the effective margin, the exchange or brokerage firm has the right to close the position held by the customer.

106.Risk Factor: In order to control the risk of holding positions, good fund management, the occupied margin divided by the total funds to indicate the use of funds ratio. If it reaches 1 or is greater than 1, a margin call will be made.

107. Transaction code: In order to avoid confusion, the futures exchange adopts the system of one code for each customer, each customer has a fixed customer code in the exchange.

108. Positive market: reflecting the relationship between the spot price and the futures price of the same commodity, under normal circumstances, the spot price is lower than the futures price, or the price of the near-term contract is lower than the price of the forward contract. Reverse market of this price relationship is just the opposite.

109. Forward month: the month of the contract with a longer delivery period, as opposed to the near-term (delivery) month.

110. Near-term delivery month: the month of the futures contract closest to the delivery period, also known as the spot month.

111. finalized price: the price at which a call or put option is bought or sold at the agreed price. Also known as the performance price.

112. Processing margin: the price difference between the cost of soybeans and the revenue from the sale of processed soybean oil and soybean meal.

113. minimum price: the smallest amount of price change allowed in a contract transaction. Also known as the minimum price fluctuation.

114. Delivery grade: In the must be based on futures contracts for delivery of real goods, according to the relevant rules of the exchange and the provision of a standard grade of commodities or financial instruments.

115. Day Trader: A speculator who closes out all positions in futures and options contracts traded on the same day before the close of daily trading.

116. current earnings: the ratio of the interest on a bond to the market price of the bond at the time.

117. Cross-protection: when a spot commodity hedging, but no futures contracts for the same commodity, another commodity futures contracts with the same price trend for the spot commodity for hedging.

118. capital management: in order to control risk in trading, the use of funds to implement the financial management approach. The purpose is not to use all the funds to trade, that is, not full trading.

119.Trading strategy: According to the analysis of price fundamentals and technical aspects of the trading judgment and operational methods.

120. Designated site: The instruction that enables the seller of an option contract to enter a particular futures site to fulfill its obligations. If the call option seller in the buyer's request for performance, will assume the short futures position, put option seller in the buyer's request for performance, will assume the long futures position.

121. Cash settlement: usually used in index futures contract trading, settlement mode is based on the spot value of the index on the last trading day to cash settlement index futures contracts. Distinguished from delivery on the basis of a specified commodity or financial instrument.

122. spot price: usually refers to the spot market price of the actual commodity available for immediate delivery.

123. spot contract: a sales agreement for immediate or future delivery of the actual commodity.

124. spot market: a place where actual commodities are bought and sold, i.e. grain warehouses, banks, etc.

125.Carry-over inventory: mainly used in the grain market, meaning inventory carried over from the previous sales year to the next sales year.

126.Storage costs: storage and insurance fees paid during the holding of a spot commodity (such as grains or metals), in the interest rate futures market, meaning interest fees paid on funds tied up. Also known as holding costs or position.

127. two flat option: an option in which the strike price of the option contract (the fulfillment price) is equal or approximately equal to the prevailing market price of the underlying futures contract.

128. Cash settlement: refers to the end of the period when the closed futures contracts for delivery, the settlement price to calculate the profit and loss of the open position, cash payment in the form of final settlement of futures contracts.

129.Physical delivery: refers to the buyer and seller of futures contracts at the expiration of the contract, according to the rules and procedures established by the exchange, through the transfer of ownership of the underlying futures contracts, the expiration of open positions for the settlement of the behavior. Commodity futures trading generally uses physical delivery.

130.Speculative trading: refers to the futures trading behavior in the futures market for the purpose of obtaining spread gains. Speculators based on their own judgment of the trend of futures prices, to make the decision to buy or sell, if this judgment and the market price trend is the same, then the speculator closes the position out of the speculative profits can be obtained; if the judgment and the price trend is the opposite of the position, then the speculator closes the position out of the speculative losses borne.

131. Hedging: buy and sell two related commodities at the same time, and hope to make a profit later when hedging the trading position. For example, buy and sell the same commodity, but different delivery month of futures contracts; buy and sell the same delivery month, the same commodity, but different exchanges of futures contracts; buy and sell the same delivery month, but different commodities of futures contracts (but the two commodities have a correlation between the relationship). Stop Limit: The maximum price that can be entered for a commodity on a given day (Stop Limit = Yesterday's Settlement Price + Maximum Change).

132. Down Stop Amount: the minimum limit price that can be entered for a commodity on the same day (Down Stop Amount = Yesterday's Settlement Price - Maximum Change).

133. Hedging: spot traders in the futures market, according to the corresponding futures varieties to make the opposite direction of trading with the spot market, an equal number of transactions. In order to avoid risk and lock profits or costs of a form of trading.

134. Limit order: the customer limit to a certain price to buy or sell orders.

135. Cancel order: the customer will be for the completion of the order to withdraw.

136. Actual Profit and Loss: The profit and loss on a futures contract's books after the position is closed.

137. Floating Profit and Loss: Contracts for the closing of positions, the contract transaction price compared to the current market price or settlement price after the close of business, and the resulting profit or loss.

138. Continuous pattern: the price in an upward or downward trend in the form of a temporary correction.

139. Reversal pattern: price in an uptrend or downtrend pattern that signals the end of the trend.

140. Volume Divergence: The price is at a record high while the volume is not greater than the previous rise.

141. Indicator divergence: usually categorized into top and low divergence. Price record high and the indicator did not record high for top divergence, price record low and the indicator did not record low for bottom divergence.

142. Indicator Blunt: In a downtrend, the price is constantly making new lows causing the indicator to wrap around the oversold area.

143. Indicator drift: in an uptrend, the price is constantly making new highs in the phenomenon caused by the indicator in the overbought area winding.

144. Positive news: news that causes the market to fall.

145. Positive news: news that causes the market to rise.

146. Trading system: based on a combination of several analytical theories, the formation of a set of effective operating system.

147. Position Limit System: A system in which futures exchanges limit the number of positions held by their members and clients in order to prevent market risk from being over-concentrated in a small number of traders and to guard against market manipulation

148.

149. Currency futures: also known as foreign exchange futures, it is the exchange rate as the underlying futures contracts, used to hedge exchange rate risk.

150.Interest rate futures: refers to the bond-type securities as the underlying futures contracts, it can hedge the risk of fluctuations in the price of securities caused by fluctuations in bank interest rates.

151.Financial futures: refers to futures contracts with financial instruments as the underlying. Financial futures, as a kind of futures trading, has the general characteristics of futures trading, but compared with commodity futures, the underlying of the contract is not a physical commodity, but traditional financial commodities, such as securities, currencies, exchange rates, interest rates and so on.

152. Commodity futures: Commodity futures are futures contracts whose underlying is a physical commodity. Commodity futures have a long history and a wide variety, mainly including agricultural and sideline products, metal products, energy products and other categories. Specifically, about 20 kinds of agricultural products, including corn, soybeans, wheat, rice, oats, barley, rye, pork belly, live pigs, live cattle, calves, soybean meal, soybean oil, cocoa, coffee, cotton, wool, sugar, orange juice, canola oil, etc., of which soybeans, corn, wheat is known as the three major agricultural commodities futures: 9 kinds of metal products, including gold, silver, copper, aluminum, lead, zinc, nickel, rake, platinum; 5 kinds of chemical products, including crude oil, heating oil, unleaded regular gasoline, propane, natural rubber; 2 kinds of forestry products, including lumber, plywood.

153. Listed varieties: refers to the underlying futures contracts traded, such as contracts represented by corn, copper, oil and so on. Not all commodities are suitable for futures trading, in a large number of physical commodities, generally speaking, only have the following attributes of commodities can be listed as futures contracts: First, price volatility. Second, large supply and demand. Third, easy to classify and standardize. Fourth, easy to store, transportation. According to the trading varieties, futures trading can be divided into two categories: commodity futures and financial futures. To physical commodities, such as corn, wheat, copper, aluminum, etc. as futures varieties are commodity futures. Financial products, such as exchange rates, interest rates, stock indices, etc. as futures varieties are financial futures. Financial futures varieties generally do not have quality problems, delivery is also mostly used in the difference between the settlement of cash delivery. China's listed varieties are mainly copper, aluminum, soybeans, wheat and natural rubber.

154.VOID OPTIONS: Options that do not have intrinsic value, i.e., call options whose knockdown price is higher than the prevailing futures price or put options whose knockdown price is lower than the prevailing futures price.

155.Real Options: Options with intrinsic value. A call option has intrinsic value when the finalized price of the call option is lower than the prevailing market price of the underlying futures contract. A put option has intrinsic value when the finalized price of the put option is higher than the prevailing market price of the underlying futures contract.

156.American option: An option that can be executed on any day of the life of the option after it has been traded, and is mostly used by over-the-counter exchanges.

157.European style options: are options that are allowed to be executed only on the expiration date of the contract, which are used in most OTC exchanges.

158.Futures Contract: is a standardized contract agreed to by an exchange that provides for delivery of a certain quantity and quality of a commodity at a specific time and place in the future. The futures exchange specifies the standardized quantity, quality, place of delivery, and time of delivery for the futures contract, and as for the futures price, it varies with market conditions.

159. Option seller: A person who earns a premium by selling an option contract and is obligated to perform when the option holder requests to exercise the right. Also known as a seller.

160.Option buyer: the buyer of a call or put option. An option buyer has the right, but not the obligation, to assume a particular futures position. Also called option holder

161.Put Option: is the right to sell the underlying at the strike price during the life of the option contract.

162. call option: is the right to buy a certain amount of the underlying at the strike price during the life of the option contract.

163.Medium and long term trading: a form of trading that is bought or sold for a long period of time before it is closed. Generally more than two weeks in the futures market.

164. Required Margin (NM): the minimum amount of the commodity traded in the U.S.-China exchange regulations in the trading contract.

165. Effective Margin (EM): refers to the amount of money that a trading account is blacked out for use in the course of trading.

166. Margin Call (CM): When a customer trades at a loss to the extent that the effective margin is insufficient, it is necessary to add to make up the difference.

167.Last trading day: futures contracts to the delivery of the month of the last trading day, not to close the position should be required to pay the full amount of margin withdrawal of spot or according to the contract quantity, quality, specifications, the location of the provisions of the delivery of the spot.

168. Futures exchange: specializing in standardized futures contracts trading place, its nature is not for profit, in accordance with the provisions of its statute to implement self-regulation, with a view to all the property to bear civil liability.

169.Futures brokerage firms: approved by the relevant state departments, with the qualification of futures brokerage business, with exchange member seats, the execution of customer futures transactions.

170.Technical Analysis: A price analysis method that utilizes historical prices, trading volume, short volume and other trading data to predict future price trends.

171.Fundamental Analysis: A method of analysis that uses information about supply, demand, and other factors to predict future price changes in the market.

172.Stock Index Futures: A financial futures contract that uses a stock price index as its underlying.

One, account opening

Investors choose futures brokerage companies

Commissioning an application to open an account

In essence, it is the investor and the futures brokerage company to establish a legal relationship between.

(I) Risk Disclosure : "Risk Disclosure of Futures Transactions", which includes the risk of position, the risk of margin losses and additions, the risk of being forced to close a position, the risk that a trading order will not be filled, the risk faced by hedging, and the risk caused by force majeure.

Agreed Matters:

Choice of trading method and notification method, etc.;

Choice of deposit/withdrawal method - "Bank Futures Transfer" (if you decide to use it, you should also sign the "Agreement on Bank Futures Real-Time Transfer");

Commissioning fees;

Commissioning fees.

Handling fee;

Other special requirements

(2), signing the contract

"Futures Brokerage Contract"

Individuals opening accounts should provide their own identity cards, retaining the seal or signature sample card;

Units opening accounts should provide a photocopy of the "business license of the enterprise legal person", and provide the legal representative and the unit futures trading business Executive's name, contact number, the unit and its legal representative or the person in charge of the unit seal and other written content material and the legal representative authorized futures trading business executor of the written power of attorney.

The Exchange has implemented a customer transaction code registration system, one code for each household, dedicated code

(3), payment of margin

After the completion of the above formalities, the futures brokerage firm will prepare a futures trading account for the customer and deposit the required account opening deposit. The margin collected by the futures brokerage company from the client belongs to the client, and the futures brokerage company is strictly prohibited to use it for other purposes except for depositing the margin with the futures exchange for the client in accordance with the provisions of the CSRC for the settlement of futures transactions.

Two, order

Trading order content: futures trading varieties, trading direction, quantity, month, price, date and time, the name of futures exchanges, the name of the client, the client's code and account, the futures brokerage company and the client's signature, etc. .

Types of orders: Limit orders Cancel orders Market orders (index futures only)

Methods of placing orders: Written orders Telephone orders Network orders Self-service terminals

Third, bidding

Main modes: open outcry computerized aggregation

Price priority Time priority

When BP ≥ SP ≥ CP. ≥ CP, then: the latest transaction price = SP When BP ≥ CP ≥ SP, then: the latest transaction price = CP When CP ≥ BP ≥ SP, then: the latest transaction price = B

(Provided that the bid price must be greater than or equal to the ask price)

Opening and closing prices are generated by the pooled bidding

Maximum turnover principle

Four, settlement

Settlement

Settlement is the process of settlement based on the results of transactions and the results of the transaction. Settlement includes the settlement of the Exchange to the members and the settlement of the members of the futures brokerage company to the clients, and the results of its calculation will be credited to the client's margin account.

V. Delivery

Delivery: Physical delivery Cash delivery

Physical delivery: Physical delivery refers to the expiration of a futures contract, the two sides of the transaction through the transfer of ownership of the commodity contained in the futures contract, the process of closing the expiration of open positions.