What Is Margin Trading?
The margin trading system has a certain degree of leverage. Investors do not need to pay the full amount of the contract value, they only need to pay a certain percentage of the margin to trade. The leverage effect of the margin system doubles the risks while magnifying the returns. When extreme conditions occur, the investor's loss may even exceed the principal invested.
Margin Trading System
Right!
- Chinese name
- Margin Trading System
- Nature
- Technology
- Category
- economic
- Belong to
- transaction
- The margin trading system has a certain degree of leverage. Investors do not need to pay the full amount of the contract value, they only need to pay a certain percentage of the margin to trade. The leverage effect of the margin system doubles the risks while magnifying the returns. When extreme conditions occur, the investor's loss may even exceed the principal invested.
- Margin trading means that when customers buy or sell foreign exchange spot contracts or futures contracts, they only need to pay a certain percentage of the contract value without paying in full, and the profit and loss are determined according to the contract amount, so that the spot and contract
- In the "China Financial Futures Exchange Settlement Rules" (draft for comments), the margin is divided into
- General Rules of China Financial Futures Exchange Settlement Rules
- First
- In order to regulate futures settlement behavior, protect the legitimate rights and interests of the parties to futures trading and public interests, prevent and resolve futures market risks, and ensure the normal conduct of futures settlement by the China Financial Futures Exchange (hereinafter referred to as the exchange), according to the "China Financial Futures Exchange Transaction Rules "to formulate these rules.
- Article 2
- Settlement business refers to the business activities of the exchange to liquidate and transfer the transaction margin, profit and loss, handling fees and other relevant funds of the two parties to the transaction in accordance with the transaction results, announced settlement prices and relevant exchange regulations.
- Article 3
- The settlement of the exchange adopts a margin system, a day-free debt settlement system, a settlement guarantee system and a risk reserve system.
- Article 4
- The exchange implements a member hierarchical settlement system. The exchanges settle settlement members, settlement members settle their customers and entrusted trading members, and trading members settle their customers.
- The fifth
- Exchanges, members, customers, and futures depository banks shall abide by these rules