Twenty-three, when the market risk is greater, what will happen to the cotton futures trading margin?

Answer: When the following situations occur, Zhengshang will increase the trading margin of cotton futures contracts as required:

(1) When the cotton futures contract has a price limit;

(2) When the price change of a contract at a settlement price in a certain month has accumulated three times the contractual increase (fall) of the contract for four consecutive trading days, and has accumulated 3.5 times the contractual increase (fall) of the contract for five consecutive trading days , Transaction ownership increases the transaction margin for some or all members unilaterally or bilaterally, with the same proportion or different proportions according to market conditions, and the margin of the transaction margin is not higher than 3 times the transaction margin specified in the contract;

(3) When the contract market risk of a certain variety in a certain month increases significantly, the Exchange may increase the trading margin for some or all members and investors, either unilaterally or bilaterally, in the same proportion or in different proportions according to market conditions.

24. How to deal with the continuous rise and fall of cotton futures price (unilateral market)?

Answer: When there is a unilateral market on a certain trading day of a contract, the margin ratio of the futures contract transaction will increase by 50% during the settlement on that day. The price range of the second trading day is automatically increased by 50% based on the original price range (only in the direction of the stoppage). If there is no unilateral market in the same direction on the second trading day, the third trading day will automatically revert to the contract price and margin standard; if there is a unilateral market in the same direction on the second trading day, the settlement will The margin ratio after the increase is kept unchanged for one trading day, and the price range for the next trading day is maintained after the increase. If there is no unilateral market in the same direction on the third trading day, the contract price and margin ratio will be executed on the fourth trading day.

A unilateral market in the same direction appears for three consecutive trading days, and the market can be closed for one day. Trading ownership is suspended for some or all members, and the following methods are used to resolve risks according to market conditions:

(1) Mandatory lightening of positions. The exchange will declare all open positions at the price limit, and the unit's position loss is greater than or equal to 7% of the settlement price of the trading day, and automatically match the current price limit with the contract profit position according to the prescribed methods and methods. Deal. Before the mandatory lightening of positions, investors will automatically hedge their positions.

(2) If there is a settlement or delivery risk in the market and a major impact is occurring or is about to occur, the Exchange may decide and announce to adopt unilateral or bilateral, the same or different proportions, some members or all members to increase the transaction margin, and suspend some members Or all members open new positions, adjust the ratio of the daily limit, limit the withdrawal of funds, close the position within a certain period, force the position to be closed, postpone the delivery date, extend the delivery time and other measures to resolve market risks, but the adjusted price limit The proportion does not exceed 20%. If the exchange announces an adjustment of the margin level, those with insufficient margin shall add it in place within the prescribed time.

25. When compulsorily reducing positions, which positions are included in the closing position?

Answer: The positions included in the closing position mainly include:

(1) Speculative positions (including general intertemporal arbitrage positions) of investor unit holding profits;

(2) The hedging position where the profit of the investor's unit position is greater than or equal to 2 times the price specified in the contract.

Holding warehouse receipts, the corresponding positions of the goods to the warehouse and the corresponding positions of the intertemporal arbitrage that have received the warehouse receipts, no compulsory reduction of positions is implemented.

26. What is the position limit of cotton futures? What are the basic principles of limit positions?

Answer: The position limit refers to the maximum number of speculative positions that a member or investor can hold on a single contract calculated by the Exchange.

The following basic principles apply to cotton futures positions:

(1) The number of positions to be limited decreases in three stages: "normal month", "one month before delivery month" and "delivery month";

(2) A combination of restricting member positions and restricting investor positions to control the size of market positions;

(3) The hedging transaction position is subject to an approval system, and its positions are not restricted;

(4) The arbitrage trading position is subject to an approval system, and its positions are not restricted.