Futures trading adopts the margin system. The margin is the capital paid by futures investors in accordance with regulations or the standard warehouse receipt, treasury bond and other valuable securities with stable value and strong liquidity submitted by futures investors for settlement and performance guarantee. Investors can check the futures margin accounts of futures companies through the website of the China Futures Margin Monitoring Center.
Investors should ensure the legality of their funding sources. Futures companies also have the right to require investors to explain the legality of the source of funds, and may require investors to provide relevant proof if necessary. Investors have a guarantee obligation for the explanations and supporting documents they provide, and bear corresponding legal responsibilities. In addition to cash, investors can use standard warehouse receipts, treasury bond and other valuable securities with stable value and strong liquidity as deposits according to the rules of the futures exchange, and the futures company shall handle them on its behalf according to the rules of the futures exchange. Futures companies shall not arbitrarily misappropriate investor margin.
The proportion of margin paid by investors to futures companies is determined by the futures companies. Futures companies have the right to adjust the margin ratio on their own according to the regulations of futures exchanges, settlement institutions, market conditions, or when they deem it necessary. When a futures company adjusts the margin ratio, the adjustment margin announcement or notice issued by it shall prevail. Futures companies have the right to individually increase the margin ratio or refuse investors to open positions when they believe that the risk of open contracts held by investors is high. In this case, a notice to increase the margin ratio or refuse investors to open positions will be issued separately to the investors.
Here, investors need to pay attention to the issue of adjusting margin standards, which can easily lead to disputes between investors and futures companies. During the performance of the contract, futures companies may sometimes adjust the margin collection standards for all investors or for individual investors individually. In practice, investors often have confusion or objections to futures companies raising their margin standards, and even disputes arise as a result. Especially when futures companies raise their margin standards, resulting in insufficient margin for investors and requiring them to add margin, it is more likely to cause confusion, objections, and disputes among investors. Investors should be aware that adjusting margin standards is a contractual right set by futures companies to meet regulatory requirements and control risks. When investors hold futures positions, they should pay margin according to the standards notified by the futures company. Futures companies often issue margin call notifications through websites, business venue announcements, daily trading settlement reports, and other forms. Investors should pay attention in a timely manner to avoid forced liquidation due to delayed margin addition.
Futures trading adopts a daily debt free settlement system. When investors engage in futures trading, they must promptly receive trading settlement reports and confirm them, otherwise, it may affect their own rights and interests. In practice, it is common for investors to suffer losses in their equity due to failure to receive and carefully review transaction settlement reports in a timely manner. Firstly, investors must promptly receive and carefully review the transaction settlement report. According to the agreement, the futures company will send trading settlement reports to investors through the query system of the China Futures Margin Monitoring Center. At the same time, auxiliary notification methods such as email, online market system notifications, mobile SMS, recorded phone calls, etc. will be used to send daily trading settlement reports, margin addition notifications, separate margin adjustment notifications, and other related documents to investors. Secondly, investors should fully understand the meaning and effectiveness of confirmation. In futures trading, the "Futures Brokerage Contract" stipulates that investors should raise objections to the settlement report of the previous day's trading within the agreed time, otherwise it will be deemed as confirmation of the recorded items in the report, including important matters such as trading, profits and losses, equity, and handling fees. Thirdly, investors should pay attention to announcements on the website and business premises of futures companies. During the operation of futures companies, they will adjust the margin collection ratio, handling fee collection standards, etc. according to the regulations of futures exchanges, market conditions, or their own business needs. These important matters are generally notified to all investors through announcements on the futures company's website, business premises, and other places. Fourthly, investors shall change the notification method in accordance with the provisions of the contract. If investors need to change the notification method, they should promptly notify the futures company in writing, and the change can only take effect after confirmation by the futures company. Otherwise, the consequences of notification delay caused by unilateral changes by investors will be borne by the investors themselves.
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