Futures

[Historical] futures

Futures Futures for the English, by the term "future" from evolution, but the meaning is: The two sides do not have occurred in the early trading on the physical settlement, but the common agreement in the future when the settlement of a physical, China people called "futures."

The initial spot from the long-term futures trading is developed from the original spot is the long-term deal the two sides in a verbal commitment to a certain amount of time for settlement of goods, but with the expansion of the scope of transactions, the sale of an oral lease commitments have been gradually replaced. Such a contract of increasingly complex, the need for an intermediary guarantees, in order to monitor both sides of delivery and payment schedule, then in 1570 the London created the world's first commodity exchange forward contracts - Royal Exchange. In order to adapt to the continuous development of the commodity economy, the 1985 Chicago Stock Exchange introduced a cereal called "futures contract" standardization agreement to replace the original use of forward contracts. The use of such standardized contracts, allowing the sale of resale contracts, and gradually improved the margin system, therefore a specialized trading futures contracts standardization of the market, a futures investors a finance and investment tools.
[The difference between the stock and futures]
ROI is not the same: Futures Exchange due to its margin leverage principle, can zoom proceeds, skillfully deflected. Futures contracts only pay 10 per cent of the total value of the capital; stock must be 100% invested, the financing required to pay interest costs.

Transactions do not like: domestic stocks can only do, and the futures can do more, but also short;

Futures accounts

First, accounts
1, select accounts institutions (qhkh.blog.163.com)

2, the depositary conditions

One of the following circumstances, shall not be a futures brokerage firm customers:
No civil capacity or restrict the civil capacity of a natural person;
Futures regulators, the staff of the Futures Exchange;
The workers of the company and their spouses, immediate family members;
Prohibited from entering the futures market;
Financial institutions, institutions and state organs;
Failure to provide legal representative signed the documents of ratification of state-owned enterprises or state-owned assets or the status of holding the dominant position of the enterprise;
Commissioned by the depositary units commissioned by the authority failed to provide documents;
Other provisions of the China Securities Regulatory Commission;
3, time and place of accounts: time to choose any place of business for futures companies.
4, the amount of accounts: not less than 50,000 yuan;
5, to provide information required to open an account:
Individual households: natural investors in the head as a positive, positive ID card scanning pieces;
Corporate families: the accounts of institutional investors as a positive agent of the head, scanning the depositary agent of positive ID card, the business license of institutional investors (copy) and the organization of code scanning card.
Second, the use of all the cash, wire transfers, money orders, checks, transfers and other methods of silver. Wire transfers, money orders, checks should be funding to the company account

Third, the application transaction coding, coding fill in the application forms Stock Exchange, futures companies from trading for clients for coding the application procedures, coding was approved before the transactions.

4. Transactions

5, clearing the settlement, the Department of daily transactions for clearing, business, the Office of the daily turnover at the Department of Housing and sign-clearing single, online trading customers through daily online queries for clearing single.

6, dismantling End households, futures companies in the provisions for withdrawal households formalities, the two sides signed the termination agreement to end agency relationship.

7, the futures companies from the Ministry of Finance to take cash, wire transfers, money orders, checks and bank transfers of the way out for the customers.

Futures speculation and the stock market is very similar way, but there is very clear distinction.

First, a small risk: The stock is trading in full, that is, how much money can only buy the number of shares, bonds and futures is the system that only paid turnover 5-10% can be 100% of the transactions. For example, investors 10,000 yuan, 10 yuan to buy a stock can buy 1,000 shares, and investment on the futures contract can be 100,000 yuan of commodity futures contracts, which is a small risk.

Second, two-way transactions: the stock is a one-way transaction, buying the shares only to be sold, and to be able to buy futures can be sold first, and this is a two-way transaction.

Third, time constraints: no time limits on stock transactions, if the quilt can be long-term positions, and must be due futures delivery, otherwise Stock Exchange will be forced to open or physical delivery.

Fourth, the actual profit and loss: stock investment return of two parts, one of which is the market post, and the other is paying dividends payable, and investment gains and losses in the futures market transaction is the actual profit and loss.

5. Huge Risk: As a result of introducing futures margin system, the additional margin due forced open system and the restrictions, making it more high-reward, high-risk characteristics, in a certain sense, the futures can make you rich overnight , may also cause you enveloping his past, investors to be cautious investment.

1: Variety futures active only a few varieties, and facilitate the analysis tracking. Shares have more than 1,300 varieties, Kanyibian very difficult, with more analysis is not easy.
2: funds futures margin trading, with 5 per cent of the funds can do 100% of the transaction, funds 20 times magnification, the leverage is very obvious.
3: trading futures transactions T +0, short mechanism can be a two-way transaction. T +1 stock is not short mechanism.
4: Participants: futures price risk by trying to evade the producers and distributors are willing to bear the risk of price risk and obtain profits of the joint participation of speculators. Stock speculators basically most of the participants (high secure speculators have been forced to become investors)
5: role: Futures most notable characteristic is provided to a spot and dealers avoid price risk market. Stock financing is the most important role, that is, we often say that the Physically.
6: Information Disclosure: Futures main information on production, consumption, the main origin of the weather report, professional newspapers have reported very high degree of transparency. The main stock of the financial statements, and false listed companies up to 60 percent.
7: The subject matter: the corresponding futures contracts are fixed commodities such as copper, soybeans, etc.. Stock portfolio.
8: Price: Futures prices in the future everyone is a trend expected by the futures commodity costs constraints from the recent delivery, the price will be Fun in the same spot prices. Makers stock price is subject to the intensity of the boost, and the market is closely related to the trend.
9: Risk: commodities is the cost, the excessive prices deviate from the market will be corrected, participants mainly from the risk of a reasonable grasp on the positions and the level of operations. The stock is delisted, the shares can be down low. Even if you have high operating level, it was not easy to see which companies in the false accounting, which is in the department of this company and stock certificates.
10:: front-month futures have matured, must be delivered. Can be removed by the performance of hedge responsibility. Stocks can be long-term holders.




[The main features of futures contracts:

A. commodity futures contracts variety, quantity, quality, grade, the time of delivery, such as the place of delivery terms are established, standardized, the only variable is the price. Futures contracts are usually from the standard design of the Futures Exchange, approval by the state regulatory agencies listed.
B. futures contract was organized by the Futures Exchange under contract, have the force of law, while prices in the exchange trading room through an open competitive way; abroad are using the open outcry method, and are used computer business in China.
C. futures contracts from the implementation of security exchange, does not allow private transactions.
D. futures contracts can be settled through cash or hedging transactions to meet contractual obligations or discharge.

[Elements of futures contracts:

A. Variety transactions
B. transactions and the number of units
C. Minimum price changes, changes in the minimum offer price shall be the whole multiples.
D. maximum daily price fluctuation limit, that is up Dietingban. When market prices rise to the biggest gain, we said, "涨停board" Instead, "Dietingban."
E. month contract
F. trading hours
G. Last Trading Day: The last trading day is a contract in the futures contracts for delivery in the transactions in the last trading day;
H. delivery time: that the contract requires physical delivery time;
I. delivery standards and grading
J. delivery location
K. margin
L. transaction fees

[] The role of futures contracts

First, the use of futures to hedge market sale and purchase agreements, locked costs, avoid the spot market because of the risk of commodity price fluctuations that may cause losses.
Second is to attract speculators risk investment transactions, increased liquidity of the market.

[Features] Futures Exchange


1, the Futures Exchange, the two-way: the Futures Exchange and the stock market one of the greatest distinction can be a two-way trading on futures, futures can be bought air can also short selling. Prices can buy low and sell high, prices have fallen low and sell high when completed. More can be done to make money, and money can be short, so that no bear market futures.
[In a bear market, the stock market slump and the futures market still has scenery, the opportunity remains:

2, the low-cost Exchange: Futures Exchange, and other countries do not levy stamp duty tax, the only cost is transaction fees. At present three domestic procedures in 2/10000 Stock Exchange, about three, with the additional cost of brokerage firms, unilateral fee is less than 0.13% of the volume of transactions.
[Low cost is a guarantee of success:

3, futures leverage:
Lever Principle is the charm of futures investments. Futures market transactions without paying all the money, the current domestic futures exchanges need to pay only 5% margin can be obtained the right to future transactions.
As the use of margin, the original prices to be more than 10 times magnification. We assume that the closure of a copper prices on涨停(Futures涨停only in the last trading day of the 3 per cent), the operation of our capital margin of 60% (3% ÷ 5%) is huge,涨停board in the stock market six times.
[] Have the opportunity to make money

4, "T +0" trading opportunities doubled: Futures is the "T +0" transaction, your application funds to the extreme, you grasp trends, the transaction can be ready at any time positions.
[Convenient access can increase the security of investment --

5, the futures market but greater than zero and negative market: futures is a zero-sum market, the futures market is not in itself create a profit. In a certain period of time, do not consider funds from the access and transaction costs, the total capital of the futures market is unchanged, market participants profit from another dealer losses.
In the stock market is entering a bear market, the market price has shrunk greatly, and the meagre dividends, the state, enterprises attract funds nor short mechanism. Of the total funds in the stock market over a period of time there will be negative growth in profit will be less than the total amount of losses.
[Negative] is always greater than

Comprehensive national policy, and economic development needs, as well as their futures are decided features futures has tremendous room for growth.

Stock Index Futures name is the stock price index futures, also known as stock index futures, index futures, stock index refers to the subject matter for the standardization of futures contracts, the two sides agreed on a specific future date, according to a pre-determined Index size, the sale of the underlying index. As a type of futures, stock index futures and commodity futures with the same basic features and processes.
[Stock index futures - the basic characteristics of


1. Stock index futures and other financial futures, commodity futures contracts a common feature of standardization. Futures contracts are standardized means in addition to price, all the futures contracts are pre-established good terms with standardized characteristics. Through the standardization of futures trading futures contracts.
Transactions decentralization. Futures market is a highly organized market, and strict management system, the Futures Exchange, the Futures Exchange on completion.
Hedging mechanism. Exchange can operate through the end of reverse hedge compliance responsibility.
No liabilities daily settlement system. After the end of daily trading, the Stock Exchange under the settlement price on the date of each Member of the margin account is adjusted to reflect the investor's profit or loss. If the price is not conducive to investors holding positions in the direction changes, daily settlement, investors will have to deposit an additional, if less than bonds, investors could be forced open position.
Leverage. Stock Index Futures using margin trading. Because of the margin required to pay is based on the number of transactions by the index futures to determine the market value of the Stock Exchange in accordance with the market price changes, determine whether additional margin or can extract excess.
2. Stock index futures own unique characteristics of stock index futures for the subject of a specific stock index, Price units of the index point.
Certain contracts to the value of the currency and stock index multiplier offer the product to express.
Stock futures delivery of a cash delivery, but not by delivery shares through cash settlement to settle the post position.
Stock index futures and commodity futures distinction between different underlying index. Stock Index Futures for the subject of a specific stock index, the underlying asset is not true, and the Commodity Futures Trading object is a physical form of commodities.
Delivery in different ways. Stock futures a cash delivery, delivery, adopted in the settlement cash to settle the post position and the use of physical commodities futures delivery, delivery, the transfer of ownership through the physical liquidation.
Expiration date of standardization to different degrees. Stock Index Futures contracts are standardized maturity, the general maturity in March, June, September, December and several, and commodity futures contracts expire, according to the characteristics of different products and different.
A different cost. Holders of stock index futures is the cost of financing costs, and there is no physical storage costs, and sometimes there are dividends of their shares, if the dividends exceed financing costs, but also will produce a profit and the cost of ownership commodity futures including storage costs transportation costs, financing costs. Stock futures lower than the cost of holding commodities futures.
Performance of different speculation. Stock Index Futures response to external factors more sensitive than commodities futures, price fluctuations have become more frequent and severe, thereby stock index futures commodity futures is more than speculative.
[] Futures Exchange

Futures Exchange (foreign exchange futures) is the foreign exchange futures trading in the future the two sides agreed a certain time, based on the proportion of agreement now, in one currency to another currency exchange standardized contract transactions. Refers to the subject of exchange rate futures contracts, to avoid exchange rate risk. It is the first financial futures in a variety. Since May 1972 the Chicago Mercantile Exchange, the International Monetary Market Division launched the first since the foreign exchange futures contracts, with the development of international trade and the world economy, the acceleration of the integration process, foreign exchange futures have maintained a strong momentum of development. It is not only for the vast number of investors and financial institutions, and other economic entities provide an effective hedging tool, but also for arbitrage speculators and provide a new means of profit.

[Concept] futures


(1) the so-called futures, futures contracts generally refers to the fact that the Futures Exchange formulate uniform, in the future provisions of a particular time and place of delivery subject of a number of standardized contracts. This object, called foundation assets is the corresponding futures contracts in the spot, and this spot could be a commodity, such as copper or crude oil, it can also be a certain financial instruments, such as foreign exchange, bonds, can also be a financial indicators, such as the three-month interbank borrowing interest rate or index.
Generalized futures concept also includes exchange-traded options contracts. At the same time the majority of the Futures Exchange listed futures and options varieties.
Futures contracts include: contract title, trading units, Price unit, the smallest change in price, the largest daily price fluctuation limit, delivery month, trading hours, the last trading day, delivery dates, grade delivery, delivery location, the minimum margin transactions, transaction procedures fees, delivery methods, such as transaction code. Annex futures contracts and futures contracts have the same legal effect.

Let me give an example of life in a small help you understand. For example, you shop Maihua, is now paid on the purchase of spot transactions; if they agreed to 12 months after his birthday, collect payments, which are long-term transactions. Exchange is generated from the spot transactions and long-term transactions, and transactions in the long-term development on the basis of the formation. Said earlier, the futures contract is actually a standardized long-term contracts. That is the commodity contract (Contract object) type, quality, quantity and delivery time, place prior provisions are good, so that buyers and sellers will not be because product quality, quantity and place of delivery, the time problem the controversy

Standard contract forms: Dalian Commodity Exchange gold soybean futures contracts on the 1st

Transactions varieties - yellow soybean trading units -10 tons / Price units hand - the smallest change in price -1 RMB yuan / ton rose Dietingban rate - the previous session to settle at 3%
Contract delivery month -1,3,5,7,9,11
Transaction time - every Monday to Friday morning 9:00 - 11:00 pm 13:00-15:00
Last Trading Day - the 10th month contract last trading day delivery - the seventh day of the last trading day (If legal holidays postponed)
Delivery level - see Annex specific content delivery locations - Dalian Commodity Exchange warehouse delivery designated trade margin - 5% of the value of the contract
Transaction fees -4 / hand delivery approach - focus on delivery transaction code - A
Listing Exchange - Dalian Commodity Exchange delivery level - the lowest rate indicators Chunliang%
Testa, impurity%% moisture, odour color premium - (yuan / ton)
Discount - (yuan / ton)
……

(2) the characteristics of futures contracts: commodities futures contracts variety, quantity, quality, grade, the time of delivery,
The place of delivery, and other terms are established, standardized, the only variable is the price. The first standardized futures contracts in 1865 by the CBOT launched.
Futures contracts in the futures exchanges were organized, and have the force of law,

The price is in the Hall of the exchange transaction through open competitive way; abroad are using the open outcry method, and are used computer business in China.

The performance of futures contracts secured by the exchanges, not private transactions, transactions

By the buyer of the seller, the seller's buyer.

Futures contracts by hedge positions and delivery settled fulfill their responsibilities.

(3) the terms of futures contracts: the smallest change in price: that the unit price of futures contracts Change the minimum changes.

The largest daily price fluctuation limit: (also called up Dietingban) is a futures contract in a trading price of the deal may not be higher or lower than the rate under the Change, more than the rate of Price Change will be considered invalid, not transactions.

Futures contract delivery month: refers to the provisions of the contract delivery month.

Last Trading Day: refers to a contract in the futures contracts for delivery in the transactions in the last trading day.

Futures contracts trading unit "hand": Futures Exchange must be "single-handedly" integer multiple, different varieties of each transaction the number of commodities contracts in the futures varieties contained in the contract.

Futures contract price of the deal: that the futures contracts for delivery in the benchmark benchmark delivery warehouse delivery prices including VAT. Contract transactions, including the opening price, closing price, such as clearing price.

Futures contracts buyer, if a contract expires, he bought futures contracts corresponding obligation to the subject; futures contracts and the seller, if a contract expires, he obliged to sell the corresponding futures contracts the subject matter (some futures contracts expire at the delivery but instead of clearing the physical differences, such as stock index futures expire in accordance with the spot index is the average for a pair of open futures contracts for final settlement.) course futures contracts traders can also choose in reverse before the expiry of the contract to offset the sale of such obligations.

(4) the formation of the Futures Exchange: the modern sense of the futures market in the United States, in 1848, launched 82 businessmen organized by the Chicago Board of Trade (CBOT), which aims to improve transport and storage conditions, and to provide information for members; 1851 Chicago by the introduction of long-term futures contracts in 1865 introduced the first standardized contracts, a bond system at the same time (not more than 10 per cent of the value of the contract), which is of historic significance system innovation; 1882 Exchange to allow hedging waive compliance responsibilities and increase the mobility of the Futures Exchange.

China's futures market is the background of the reform of the grain circulation system. Along with the State Monopoly for Purchase and Marketing to abolish agricultural policy, opening up the majority of the prices of agricultural products, the market for agricultural production, circulation and consumption of the increasing role of regulation, the prices of agricultural products and volatility of the spot price closed and distortion, agricultural production jumped up and and down and food enterprises such as a lack of mechanisms to preserve and increase the problem has aroused the concern of leaders and scholars, could establish a mechanism can provide guidance on future production and business activities of the price signals, but also guard against the risk of price fluctuations in the market had become the focus of attention . February 1988, the State Council leaders instructed the departments concerned to study abroad futures market system and solve the problem of fluctuations in the prices of domestic agricultural products, in March 1988, the first meeting of the Seventh National People's Congress, "Government Work Report": actively develop various wholesale trade market, Exploration Futures Exchange. China's futures market opened research and the regiment.

October 12, 1990 Zhengzhou Grain Wholesale Market approved by the State Council set up to the basis of spot transactions, the introduction of futures trading mechanism, the Chinese made the first step in the development of futures markets;

June 10, 1991 Shenzhen Stock Exchange to set up non-ferrous metals;

May 28, 1991 Shanghai Metal Mercantile Exchange opened;

In September 1992 the first futures brokerage firms - Guangdong Wantong futures brokerage company, marking China's futures market interrupted again after more than 40 years in China's resumption.

(5) futures-related terms: opening, and open positions: the Futures Exchange to buy, sell, as long as it is都叫opening of the new position. Traders holding the hands of the position, called the position. Covering means traders taking positions trading activities, the way for taking positions opposite to the direction of the hedge trading.

Since opening and the meaning of different positions, traders in the trading of futures contracts must specify the opening or positions.

Example: investors in a December 30 in Shanghai and Shenzhen in March to buy 300 index futures 10 hands (Zhang), the transaction price for 1450, when he will have 10 lots bullish positions. To January 10 next year, the investors see futures prices rose to 1,500, this price then sell positions 5 hand March stock index futures, after the transaction, the investors actual positions left hand more than 5 single. If investors in the declarations on the Times is sold 5 hand opening March stock index futures, after the transaction, the investors should be on the actual position is 15 hands, 10 hands bullish positions and five hand short positions.

Explosion positions: that the interests of investors account negative. Shuguang that not only investors but also the entire margin inverted debt owed futures brokerage firms. Since the Futures Exchange clearing system and the day-to-day implementation of mandatory open system, under normal circumstances warehouse explosion is not going to happen. However, in some special circumstances, such as occurred in the market that runs from changes in the positions of the heavier the opposite direction and is likely to account warehouse explosion occurred.

Wharf explosion occurred, investors must promptly make up the shortfall, otherwise they will face legal recourse. To avoid this from happening, good positions requiring special control, and abandoning as stock as Mancang operation. And timely tracking of the market, not as stock as a buy over.

Longs and shorts: bidirectional futures trading mechanism, the buyer has both the seller. In futures trading, the buyer called long, the seller called shorts. Although the stock market transactions will be referred to as multiple buyer, the seller called shorts. However, the stock must be a seller of the stock, there is no stock of the people can not be sold.

Clearing Price: refers to a futures contract on the transaction price by turnover Jiaquanbengjunjia. No transactions were recorded for the day to settle at the session of the day as the settlement price.

Volume: refers to a futures contract on the same day during all transactions turnover volume of bilateral contracts.

Positions: Futures Exchange is open positions held by the number of bilateral agreements.

Total positions: all investors on the market in the futures contracts on the "open contract" number. Published in the Stock Exchange of information, specifically "the position" column.

Changes in the positions, reflecting investor interest in the contract transaction, the investors to participate in the contract is an important indicator of transactions. If the sustained growth in the positions that both sides in the opening of trading, investors interested in the growth of the contract, the continuous influx of funds outside the contract transactions; On the contrary, when the steady decline in the positions that the parties to the transaction out in the open, traders in the interest of the contract falls. There is another situation when the transaction volume growth, but the positions do not change, this shows that the market-based trading to change hands.