ATFXDo both futures buyers and sellers need to pay margin to prevent investment fraud

In the investment market,futuresIt also occupies a place. If investors plan to buy and sell futures, they must first open a futures account before trading in the futures market, and futures trading will involve margin issues.

Do both futures buyers and sellers need to pay margin?

Yes, both the buyer and seller of futures are required to pay margin, because futures trading requires margin, and futures trading includes buying and selling futures. Futures contracts are margin trading and must be settled daily.

When buying and selling futures contracts, both parties need to pay a small amount of funds to the clearing house as performance guarantee, which is called margin. The first time buying a contract is called establishing a long position, and the first time selling a contract is called establishing a short position. Then, the contracts in hand need to be settled daily, that is, marked to market on a daily basis.

There is no unified standard for futures margin, and the margin is collected based on the type of transaction. The margin can range from a few thousand yuan to over a hundred thousand yuan, and is divided into settlement reserve and trading reserve. The settlement reserve is the margin that has not been occupied by the contract, while the trading margin is the margin that has been occupied by the holding contract.

Margin refers to the funds paid according to prescribed standards, used for settlement and guarantee of performance. Both long and short futures trading require margin trading, with the aim of stabilizing the interests of both parties. This means that investors must conduct futures trading under supervision.