Frequently Asked Questions ( FAQs )
1. What is futures?
Answer: Futures contract (English: Futures contract), referred to as futures (English: Futures), is a trading method that spans time. By signing a contract, the buyer and seller agree to deliver a specified amount of spot according to the specified time, price and other trading conditions. Usually futures are concentrated on futures exchanges and are traded in standardized contracts. However, some futures contracts can be traded through over-the-counter transactions, which are called over-the-counter contracts.
Futures is a kind of derivative instrument. According to the type of spot subject matter, futures can be divided into two categories: commodity futures and financial futures. Among the participants in futures traders, arbitrageurs (or hedgers) use futures trading to lock in profits and costs and reduce the risk of price fluctuations caused by time. Speculators take more risks through futures trading and look for opportunities to make profits from price fluctuations.
Many futures markets are developed from forward contracts, which refer to cross-time sales and purchase contracts signed one by one, and the trading rules are agreed upon by the buyer and the seller. Futures contracts are standardized by the exchange, so that traders from all sides can conveniently match transactions on the same platform. Option (option) is another derivative tool derived from a futures contract.
2. What is the margin system?
Answer: In futures trading, any trader must pay a certain percentage of the value of the futures contract that he buys and sells as a financial guarantee for the performance of the futures contract before he can participate in the trading of futures contracts and determine whether to pay extra according to price changes. Pay the funds. This kind of system is the margin system, and the funds paid are the margin.
3. Is there any limit on overseas futures?
Answer: Most products in the external market do not have a price limit system. The price limits of some products are strictly enforced by exchange trading regulations. At the same time, there is an introduction to the daily limit of some futures products in the futures product contract specifications provided by our company. For reference only, everything is subject to the exchange announcement.
4. Can overseas futures trading be locked?
Answer: No. For overseas stock futures, a certain month's contract can only have a one-sided position. Since the lock-up of futures of the same product in the same month is not compliant, it cannot be locked. When a customer performs operations in the opposite direction for a certain product in a certain month's contract, the system will automatically close the position and close the corresponding number of positions.