Futures Trading Risk Disclosure Statement

This document is a risk disclosure statement for futures trading, introducing the risks of futures trading.


Futures Trading Risk Disclosure Statement - cover page
Category
Financial Management
Document type
Other
Language
Chinese
Pages
3
File format
PDF
File size
266 KB
Published
16 November, 2023
Updated
16 November, 2023
MD5 checksum
15F57A3C5C23127FBF64A6E950E640A3

About this manual

This document serves as a risk disclosure statement for futures and options trading activities. It explains the nature of these transactions, which involve public centralized trading methods and contracts or options as trading objects. The text emphasizes the principle of 'buying and selling at one's own risk' and requires clients to understand all trading rules and risks. This manual is written in Chinese.

What's inside

  • Market Risk and Leverage
  • Margin Calls and Forced Liquidation
  • Compliance with Exchange Rules
  • Market Liquidity and Volatility
  • Regulatory Changes and Emergency Measures
  • Trading Restrictions and Suspension
  • Force Majeure and System Failures
  • Settlement Data and Intraday Trading
  • Settlement and Delivery Consequences
  • Options Exercise and Assignment

Frequently asked questions

What is the principle of futures trading?

You should follow the financial market principle of 'buying and selling at one's own risk'.

Can losses exceed the initial margin?

Yes, relatively small market fluctuations can cause huge losses, and the total loss may exceed the entire initial margin and additional margin deposited with the futures company.

What happens if margin is insufficient?

The futures company will notify you to add margin within a specified time; if not done, your open positions may be forcibly liquidated at a loss.

What risks are associated with electronic trading?

Risks include system failures, network attacks, data transmission errors, and incompatibility between your terminal and the trading system.

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