1. Futures account opening process for individual investors:
1. Investors provide relevant documents and materials. Natural person account: a copy of the account holder's own ID card, a copy of the ID card of the person who authorized the transfer of funds and the person who issued the order, and the bank personal settlement account of the account holder; legal person account: a copy of the business license (original), a copy of the tax registration certificate, and the legal representative The power of attorney signed by the person, the copy of the ID card and bank account number of the person who authorized the transfer of funds, the person who issued the order, and the legal representative.
2. Personnel in the market department remind customers of the risks of futures trading, assist customers in reading the futures brokerage contract, and let them understand the terms of it.
3. The market business department checks the client's identity and guides the client to sign the client's rights protection statement, account opening registration form, client authorization letter, account opening application form, client statement, futures brokerage contract, relevant risk reminders, bank-futures transfer agreement and investor's futures settlement account registration form.
4. The market business department sends the customer rights protection statement, account opening registration form, contract text, bank and futures transfer agreement and futures settlement account registration form to the transaction settlement department for review. The transaction department is responsible for applying for transaction codes and designating fund account numbers for clients.
5. After the transaction department has reviewed and stamped the contract, one copy will be handed over to the client for preservation.
6. Business personnel open bank and futures transfers for customers. The trading department notifies the client in writing or by phone of the initial password for transaction, initial password for fund transfer, initial password for settlement inquiry, etc.
2. The difference between the futures market and the stock market
1. The futures market is a "negative sum game". In the same period of time, the money earned by all winners plus transaction costs is equal to the money lost by all losers; the futures market is a measure of the risk of the spot market The insurance market provides economic insurance for spot market operators with the money of speculators in the futures market, thereby ensuring the stable development of the economy.
The money invested in the stock market is different. New economic value can be created through the business growth of commercial organizations. If the economic environment is stable, most people can make money at the same time. Generally, the return is slower than that of the futures market, and the risk is lower than that of the futures market.
2. Futures trading is operated with leverage. You only need to deposit a certain percentage of opening deposit (lnitial Margin) (also known as margin trading, margin, common level is 5-10%) in the futures account, as the payable commodity or related asset price With the reserve of volatility, you can buy and sell futures contracts with a value of 100%, and the ratio of profit and risk is higher than that of stocks.
When the market fluctuates violently, stock buyers and sellers will lose all their invested capital at most, and the account value will be zero. However, the profit or loss of futures traders can be tens or even thousands of times the principal. After the market closes every day, the futures clearing house will calculate the daily settlement price (Settlement Price) based on the closing price to determine the value of the open contract and adjust the unrealized profit/loss in the margin.
If the unrealized loss including the margin falls below the maintenance level (Maintenance Margin), the position holder needs to pay an additional margin (Margin Call), otherwise the position needs to be closed to stop the loss (commonly known as liquidation).