Futures contract transactions on the stock exchange
The contracts in the stock exchange are in a standard form and the prices are determined based on the auction system. Also, with the entry of futures in the stock exchange, these bonds will be more liquid. The stock exchange does not determine a trading position for itself and does not recommend individuals to have a trading position. The responsibility of the stock exchange is to make the futures market healthy and orderly.
The concept of collateral
In order to prevent the parties from refusing to execute the contract, the parties, as a condition of the contract, undertake to leave an amount as a guarantee with the clearing house and undertake to adjust the guarantee amount according to the future price changes, and the clearing house acts on their behalf. In accordance with the changes, a part of the guarantee amount of each party will be given to the other party as a proof of possession, and he will have the right to use it to settle together at the due date. For each open obligation position, there must always be a minimum level of the initial guarantee amount. This minimum is determined in the specifications of each future contract. If the guarantee amount is lower than this minimum, the customer must increase the guarantee amount to the level of "initial guarantee amount". In this situation, the customer receives a notice of the initial guarantee. The security deposit that the customer must deposit with the clearing house after receiving the notice is called the compensatory security deposit.
Final settlement
If the investor still has an open accrual position after the end of the trading period of the stock futures contract, he will be required to physically settle according to the contract. At this stage, the stock seller must deliver the pledged shares at a specific time and place and in accordance with the standards set in the contract, and the buyer is also required to pay the desired amount.
Stock futures trading fees
By buying and selling stock futures contracts, a percentage is deducted from the investor's account as a transaction fee. These bonds are tax exempt. The trading fees for stock futures contracts are as follows:
Purchase fee: 0.108%
Sales commission: 0.108%