w8 review 8:review,’,not,After,comparing,a:I’m I am not After comparing and judging the selected futures brokerage company, the investor can submit an application to the futures brokerage company to open an account. Opening an account is essentially a legal relationship establishe
I am not
After comparing and judging the selected futures brokerage company, the investor can submit an application to the futures brokerage company to open an account. Opening an account is essentially a legal relationship established between an investor (principal) and a futures brokerage firm (agent).
Generally speaking, the procedures for opening accounts for clients of various futures brokerage companies and the required documents are not the same, but the basic procedures and methods are basically the same. Commonly used trading orders in the world include: market order, limit order, stop loss order and cancellation order. There are two kinds of trading orders stipulated by China Futures Exchange: the limit order and the cancel order, and the order of the order is valid on the day.
The customer may propose a change or withdrawal before the order is filled.
Specific approach: Investors continue to buy or sell futures contracts based on their own judgments on futures price movements, and obtain higher profits through spreads. Futures trading has two purposes, one is speculative profit, and the other is hedging.
(2) Speculators, also known as risk operators, usually refer to market participants who use various technical methods to predict future commodity futures prices and attempt to earn bid-ask spreads by frequently buying and selling futures contracts. Usually divided into 'long' and 'short', the former's trading behavior is to buy the futures contract first, and then sell at the appropriate price; the latter is the opposite.
But no matter how they operate, their trading philosophy is 'BuyLowandSellHigh'. The first is the risk disclosure process. The client entrusts the futures brokerage company to engage in futures trading and must register with the futures brokerage company in advance. When the futures brokerage company accepts the application for the opening of the customer and the goods, it needs to provide the 'Prospectus of Futures Trading Risk' to the client. Individual customers should sign the Futures Trading Risk Manual after carefully reading and understanding; the customer should carefully sign and understand, the legal representative of the unit signs the futures trading risk statement and stamps the company seal. .
4. Futures Trading Participants Definition: Futures trading behavior with the primary purpose of avoiding spot price risk.
In the futures market, most companies buy and sell futures contracts to avoid the risk of spot price fluctuations, while most investors seek to capture the difference in price fluctuations. Therefore, few people are willing to participate in the physical delivery of goods, and they are closed in the form of hedging before they expire. Hedging means that the person who buys the futures contract will sell the futures contract before the contract expires; and the person who sells the futures contract will buy the futures contract to close the position before the contract expires. This kind of activity of buying, selling or selling first is allowed.
Finally, the deposit for opening an account is paid as required.
The futures brokerage company shall deposit the deposit paid by the client into the customer account specified in the futures brokerage contract for the client to conduct futures trading.
The margin collected by the futures brokerage company from the client belongs to the client; the futures brokerage company is not allowed to use it for other purposes except for depositing the deposit with the futures exchange for the client in accordance with the regulations of the China Securities Regulatory Commission. Forward transactions are essentially spot transactions and are an extension of the spot transaction in time. Specific practice: Producers, merchants or consumers in the futures market to make a transaction with the same variety and quantity as the spot, and the opposite of the position, that is, to buy (or sell) a certain commodity in the spot market, in the futures market. Sell ??(or buy) futures contracts of the same type and quantity of goods to offset or limit the risk to the spot due to price fluctuations. The purpose of hedging is not to make a profit, only to hedge. Service Content: Futures-Investment With the development of modern commodity economy and the tremendous increase of social labor productivity, international trade is generally carried out, the world market is gradually formed, and the changes in market supply and demand are more complicated.
Only the one-off price of forward contract transactions reflecting the expected changes in market supply and demand can no longer adapt to the development of modern commodity economy, and requires a price that can continuously reflect the whole process of potential supply and demand changes, so that the majority of production operators can Timely adjustment of commodity production, as well as avoiding price risks arising from adverse changes in prices, so that the entire social production process can proceed smoothly. In this case, futures trading takes place.
Business outlets place orders and telephone orders, that is, customers use the computers of the outlets at the futures company's business outlets to place orders, or place orders by telephone. The advantage of the telephone order is that the customer does not need to go to the futures company's business outlets. The trading order can be first reached to the trading department of the futures brokerage company, and then the trading department informs the market representative to place an order.
The futures brokerage company must record the customer's instructions for verification.
After the event, the customer should sign the transaction form.
The futures brokerage company shall promptly notify the market representative after accepting the customer's instructions. The market representative shall promptly enter the customer's instructions into the computer terminal on the trading seat for bidding transactions.
In the case of an invisible seat, the trading order directly reaches the trading host of the futures exchange. Online trading, that is, the client transmits the trading instructions through the network to the trading system of the futures brokerage company through the computer and using the trading software provided by the futures brokerage company. The trading system automatically transfers the customer's instructions to the trading host of the exchange.
This is one of the most convenient ways to trade.
A stop loss order is an order that becomes a market order when the market price reaches the customer's expected price level.
Customers use stop-loss orders to effectively lock in profits while minimizing possible losses and create new positions with relatively little risk. (Currently there is no such order in China) Futures trading is developed on the basis of spot trading, and is an organized form of trading by trading standardized futures contracts on futures exchanges. Since futures trading must be concentrated in the exchange, only the members of the exchange, including futures brokerage companies and self-employed members, can operate on the market. Before entering the futures market, ordinary investors should first choose a futures brokerage company member with legal agent qualification, good reputation, safe capital, operational norms and reasonable fees. Self-employed members are not eligible for agency. All orders of the futures brokerage company to its agent customers must be integrated into the transaction through the exchange, not privately hedged, and must not make profit guarantees to customers or share the benefits with customers.
3. Clearing house 3. According to the motives and purposes of futures investors trading in futures contracts, futures trading can be divided into hedging transactions and speculative trading. 1. Speculation 2. Hedging in the form of hedging, hedging can be It is divided into two types: buy hedging and sell hedging. Definition: Futures trading behavior for the purpose of obtaining spread income in the futures market. 1. Opening a five-star library includes summary reports, foreign language studies, party work, industry papers, document downloads, teaching research, and comparisons between forward foreign exchange transactions and foreign exchange futures transactions.
Customers should develop a detailed and detailed trading plan before the formal transaction. After that, the customer can place an order as scheduled. The client may place a trading order with the futures brokerage company in writing, by phone or by other means as stipulated by the China Securities Regulatory Commission.
There are several ways to place an order.
Contract standardization, margin system and unified settlement are three milestones in the development of futures trading.
In 1865, the Chicago Board of Trade realized standardization of contracts and introduced the first standard futures contracts. Contract standardization includes standardization of quality, quantity, delivery time, delivery location, and payment terms in the contract. Standardized futures contracts reflect the most common business practices, making it easy for market participants to buy and sell futures contracts, while at the same time being able to lift the performance obligations of the original sale and purchase contracts by closing the positions, greatly increasing the market liquidity of futures trading.
While standardizing the contract of the Chicago Board of Trade, it also provides for the payment of a trading margin of 10% of the total contract value. The margin system effectively avoids the problem of default in futures trading, so that the transaction can proceed normally and continuously.
With the development of futures trading, settlement has become more difficult.
The settlement method originally adopted by the Chicago Board of Trade is the ring-junction algorithm, but this method of settlement is both cumbersome and difficult. In 1891, the Minneapolis Grain Exchange was the first to establish a clearing house, and subsequently the Chicago Board of Trade also established a clearing house.
The clearing house acts as the sole buyer and settles with all contract sellers, and also acts as the sole seller to settle with all contract buyers, greatly improving the efficiency of settlement. Until the establishment of the modern clearing house, the real meaning of futures transactions will be counted, and the futures market will be fully established.
Therefore, the emergence of modern futures trading and the birth of modern futures market are the inevitable result of the development of commodity economy, and the inherent requirement of the development of social productive forces and the socialization of production.
After the customer has paid the account opening deposit in full according to the regulations, the customer can start trading and make an order.
The so-called order is that the customer issues a trading order to the business personnel of the futures brokerage company before each transaction, indicating the type, quantity and price of the proposed contract. Usually, customers should be familiar with and master the relevant trading instructions, and then choose different futures contracts for specific transactions. It is generally believed that futures trading was first produced in the United States, and the establishment of the Chicago Board of Trade (CBOT) in 1848 marked the birth of futures trading.
The emergence of futures trading is not accidental. It is based on the development of forward transactions and is based on the extensive commercial practices of commodity producers, traders and processors.
In 1833, Chicago became a center of trade between the United States and abroad. After the Civil War, Chicago developed into a transportation hub due to its superior geographic location.
By the middle of the 19th century, Chicago had developed into an important agricultural product distribution center and processing center. A large number of agricultural products were traded in Chicago. People followed the ancient trading methods to bargain across the street.
During the harvest season, farmers are transporting grain to Chicago. The oversupply of the market has caused prices to plummet, causing farmers to fail to return shipping costs. In the spring of the second year, cereals are scarce and it is difficult for processors and consumers to buy cereals. Prices are skyrocketing.
The volatility of cereal prices is extremely urgent and urgently requires the establishment of a new market mechanism and the establishment of more storage and transportation facilities.
In order to solve this problem, distributors of grain production areas came into being.
Local dealers set up a business, built a warehouse, acquired the grain of the farmer, and sold it until the grain moisture reached the required standard. The local dealer acquires the grain of the farmer through a forward transaction, stores it first, and then goes public in batches.
Local distributors need to borrow from banks to purchase grain storage from farmers. In the process of storage, they have to bear the price risk of grain overwintering. The price fluctuations may make local dealers unprofitable and even costless. .
The best way to solve this problem is to “buy before selling” and contact Chicago traders and processors in a forward contract to transfer price risk and obtain loans. In this way, forward transactions become a common form of trading.
A written order, that is, the customer personally fills in the transaction order, fills it and signs it to the trading department of the futures brokerage company, and then the futures brokerage company's trading department reports to the company's market representative on the futures exchange. That is, the resident trader, the market representative enters the command to enter the exchange host to synthesize.
In the form of written orders, customers must go to the futures company's business outlets. There are two manual intermediate links in the order process. The efficiency is low and there may be mistakes. This ordering method has become history. A limit order is an order that must be executed at a limited price or better at the time of execution.
When placing a limit order, the customer must indicate the specific price. It is characterized by the fact that it can be sold at the customer's expected price, the transaction speed is relatively slow, and sometimes it is impossible to close.
2. Futures commission merchants All of them, also known as commodity exchanges, are places approved by the government to specialize in the trading of futures contracts. They generally have a membership system, and their assets are derived from initial investment and membership dues, seat fees and transaction fees.
The highest authority of the exchange is the General Assembly, which has a board of directors or a board of directors. The board of directors appoints the president of the exchange to be responsible for day-to-day administration and management. The main functions of the futures exchange are: 1 to provide venues, facilities and services for futures trading; 2 to develop standardized futures contracts; 3 to formulate and supervise the implementation of trading rules to ensure fair, open and fair transactions; 4 organize and supervise futures trading, settlement And delivery, to ensure the performance of futures contracts; 5 responsible for collecting and publishing transaction information; 6 set up arbitration institutions to resolve transaction disputes.
2. Entrustment (2) The degree of supervision of transactions is different.
Financial futures trading is subject to regulatory oversight, and the types of transactions and traders must comply with regulatory requirements, while forward transactions are less regulated. FutureMarket is an organized market that buys and sells futures contracts in accordance with certain rules and regulations. It consists of a futures exchange, a futures commission merchant, a clearing house, and futures trading participants. Also known as the brokerage firm, it is a legally established company based on futures agency business. They represent clients in their own name to buy and sell futures, receive commissions, and are accountable to exchanges, clearing houses and customers. The agent business of futures commission merchants mainly includes: 1 execution of customer transaction orders, agent physical delivery; 2 custody and processing of customer deposits; 3 providing market information, commodity market and related services to customers, serving as a staff member for trading decisions; 4 recording customer profit and loss. Participants can be divided into two types: hedgers and speculators, depending on their purpose of participating in futures trading.
Chicago's traders and processors are also facing problems faced by local dealers, so they are only willing to pay local dealers at a price lower than their estimated forward price at the time of delivery to avoid The risk of falling prices during the delivery period.
Because the buying price of Chicago traders and processors is too low, local dealers who come to Chicago to negotiate long-term contracts have to find a wider range of buyers for their own interests and get a good price for their grain.
Some non-grain traders think that they are profitable, they buy a forward contract first, and then sell it when the delivery period is approaching, and profit from it.
In this way, the increase in the purchase of forward contracts has increased the income of local dealers, and the income paid by local dealers to farmers has also increased.
On March 13, 1848, the first modern futures exchange, the Chicago Board of Trade (CBOT), was established.
At the beginning of the Chicago Board of Trade, it was not a real-time futures exchange, it was just a place to focus on spot trading and forward trading.
In the modern developed market economy system, the futures market, as an important component, together with the spot market and the forward market, constitutes a multi-level organism with different divisions of labor and close links.
There are many similarities between futures trading and forward trading, the most prominent of which is that both parties agree to buy or sell a certain number of commodities at an agreed price at a specific time in the future.
Forward trading is the embryo of futures trading, and futures trading is developed on the basis of forward trading.
It seems that there are several times older than the last time
Copyright Notice：Original article of this site, in2018/07/26 w8 review 8，由 Alphr Publish。
Please indicate：w8 review 8:http://www.bjyirun.com/show/w8_review_8.htmlMore