In futures markets, traders can participate in futures contracts by paying a small amount of money at a certain rate of the price of the futures contract as a financial guarantee for the performance of futures contractsFutures depositsI don't know。
In my country, the futures deposit. Different by nature and role. These can be divided into two categories: settlement reserve and transaction bond. The settlement reserve is generally paid by member units to the exchange on a fixed basis to pre-position funds for the settlement of transactions. The transaction bond, which is the security actually paid by a member unit or customer in futures transactions for holding a futures contract, is divided into initial and supplementary bonds。
The initial bond is the funds required to be paid by the trader when the new warehouse is opened. It is determined on the basis of the turnover and bond ratio, i. E., the initial bond = the turnover rate. The current minimum guarantee rate in the country is 5 per cent of the amount traded, generally between 3 and 8 per cent internationally. For example, if a customer buys five soybean futures contracts (10 tons each) at $2,700 per ton, he must pay the exchange an initial guarantee of $6,750 (or 2,700 x 50 x 5 per cent)。
During the hold-up process, traders may generate floating gains or losses (the difference between the settlement price and the sale price) due to changing market conditions, so that the funds actually available in the bond account to compensate for losses and provide security can increase or decrease at any time. Floating profits will increase the bond account balance and the loss will reduce the bond account balance. The minimum balance that must be maintained in the bond account is called the maintenance bond, which is the ratio xk (the constant, which is called maintenance bond, which is usually 0. 75 in our country). When the carrying balance of the bond is lower than that of the maintenance bond, the trader must supplement the bond within a specified period of time to enable the balance of the bond account) at the settlement price x the holding stock x the margin ratio, otherwise the exchange or agent will be entitled to impose a forced settlement at the next transaction date. This part of the bond would require additional security. Still as an example, the soybean settlement price fell to $2,600 per ton, assuming the third day after the customer bought 50 tons of soybeans at a price of $2,700 per ton. Due to falling prices, the client lost $5,000 in floating losses
Futures trading bonds play an important role in guaranteeing the proper functioning of futures markets。
(1) the introduction of a deposit trading system reduces futuresTransaction costsThis allows traders to trade 100 per cent of their forwards with a 5 per cent bond, leverage futures transactions and facilitate hedging。
(2) the performance of the futures trade bond provides financial security. The bond system ensures that every transaction and every position held in all accounts has funds commensurate with the risks to which they are exposed, and that gains and losses arising from transactions are dealt with accordingly and that liabilities are eliminated. The strict implementation of this system thus provides secure and reliable guarantees for the performance of cargo contracts。
(3) bonds are important for the exchange to control the scale of speculation. Speculators and speculative activities are a lubricant in futures markets, but excessive speculation increases the risk in the middle, allowing for a robust operation of the currency field. When speculation is excessive, human and market costs can be increased by raising the margin to curb speculation and control the scale and risks of transactions. Conversely, when the futures market is low and the size of the transaction is too small, it can attract more market participants and a dynamic trading climate by reducing the amount of the bond。
