How do futures companies control risks?
; Investors generally conduct futures trading through futures companies, so how should futures companies control risks? The risk control methods of futures companies include four aspects, namely the management of customers, the management of employees, the management of settlement and risk management systems and measures, and self-supervision and inspection.
What risk management measures does the stock index futures company have?
; 1. Focusing on futures companies, strengthen risk education and reminders for futures traders. Adopt various forms to widely publicize the basic knowledge of the futures market, risk disclosure, investment philosophy and other aspects of knowledge, and improve the risk prevention awareness of futures participants.
How does the stock index futures risk control system control the risk of stock index futures
; Investments are extremely risky, especially those related to the stock market. In order to control the risk of stock index futures and ensure the safe and stable operation of the market, stock index futures has adopted targeted strict control measures and risk prevention system arrangements. The following is the relevant stock index futures risk control system for reference.
What are the risk management systems of futures exchanges?
The futures market is a highly organized market. In order to ensure an "open, fair and just" environment for futures trading, ensure the smooth operation of the futures market, and effectively control the high risks of the futures market, the futures exchange has formulated a A series of trading systems (that is, "rules of the game"), all traders must recognize and guarantee to abide by these "rules of the game" before they can participate in futures trading.
margin system
The margin system is one of the characteristics of futures trading, which means that in futures trading, any trader must pay a certain percentage (usually 5%-10%) of the value of the futures contract he or she trades to pay for settlement and guarantee performance. With the approval of the China Securities Regulatory Commission, the exchange can adjust the trading margin. The purpose of the exchange's adjustment of the margin is to control risks.
No debt settlement system on the same day
The settlement of futures trading is carried out by the unified organization of the futures exchange. Futures exchanges implement a no-debt settlement system on the same day, also known as "mark-to-market". It means that after the end of daily trading, the exchange settles the profit and loss of all contracts, trading margin, handling fees, taxes and other expenses according to the settlement price of the day, transfers the receivables and payables at the same time, and increases or decreases the settlement reserve of members accordingly.
When the margin of a futures exchange member is insufficient, it shall promptly increase the margin or close the position by itself.
price limit system
The so-called price limit system, also known as the maximum daily price fluctuation limit, means that the trading price fluctuation of a futures contract in a trading day shall not be higher or lower than the specified price limit, and quotations exceeding the price limit will be regarded as It is invalid and cannot be traded. The price limit is generally determined based on the settlement price of the contract on the previous trading day.
Position limit system
The position limit system refers to the maximum amount of speculative positions in a certain contract calculated on a unilateral basis that members or clients can hold according to the regulations of the exchange. The purpose of implementing the position limit system is to prevent the behavior of manipulating market prices and prevent futures market risks from being too concentrated on a small number of investors.
Big account reporting system
The large trader reporting system is another system closely related to the position limit system to prevent large trader from manipulating market prices and controlling market risks. Through the implementation of the large trader reporting system, the exchange can focus on monitoring members or investors with large positions, and understand their position trends and intentions, which has a positive effect on effectively preventing market risks.
delivery system
Delivery means that when the contract expires, according to the rules and procedures of the futures exchange, both parties to the transaction pass the transfer of the ownership of the subject matter contained in the contract, or settle the difference in cash according to the specified settlement price, and close the contract at the end of the contract. The delivery based on the transfer of the ownership of the subject matter is called physical delivery, and the delivery based on the cash price difference settlement based on the settlement price is called cash delivery. Generally speaking, commodity futures are mainly based on physical delivery, while financial futures are mainly based on cash delivery.
forced liquidation system
The forced liquidation system refers to a compulsory measure by the exchange to liquidate relevant positions when members and investors violate the rules. The forced liquidation system is also one of the means for the exchange to control risks. my country's futures exchange mainly stipulates that the forced liquidation system is when the member's settlement reserve balance is less than zero and fails to make up within the specified time limit.
risk reserve system
The risk reserve system refers to the system that provides financial guarantees to maintain the normal operation of the futures market and withdraws special funds to make up for losses caused by unforeseen risks.
Information Disclosure System
The information disclosure system refers to the system in which futures exchanges regularly publish relevant information on futures transactions in accordance with relevant regulations. The information released by the futures exchange mainly includes the futures trading prices of all listed varieties generated during the exchange’s futures trading activities, various futures trading data statistics, various announcements issued by the exchange, and other relevant information formulated and disclosed by the China Securities Regulatory Commission. information.
Futures trading is risky, so preventive measures must be taken!
Although the risk of futures trading is high, you should not be afraid of the futures account opening fee plus 1 point and return 90% of the unconditional direct return to the futures account 52ol.cn. If you can't be decisive, you might as well set up a time deposit. It is feasible to reduce the risk of futures trading by taking corresponding measures. How to take measures to prevent futures trading risks?
How to better play the risk management function of the futures market
1. First of all, it is necessary to choose good trading opportunities. There seem to be many opportunities in the market, and you can only do those market conditions that are both visible and easy to grasp. Such market conditions are actually rare, so you need to pay enough patience and wait This opportunity arises.
2. The second is to control the position. Position control can be said to be the main link of risk control in futures trading. Position control generally enters the market with a lower position, and does not place an overly heavy position in the same or the same commodity.
3. Next, make a good stop loss, set the stop loss point in advance, and resolutely leave the market when the stop loss point is reached. Do not cancel or change the stop loss point blindly to avoid greater losses.