"Clear Rules, Recognize Risks" Case - Deal with contract changes with caution, and you need to be even more vigilant when delivery is approaching

The futures market can effectively disperse the risks caused by price fluctuations in the spot market, and can form real and reasonable commodity transaction prices through an open and transparent trading mechanism, playing an important role in my country's capital market. The futures market implements a margin trading system, which can mobilize a small amount of funds for larger-value investments. It has the characteristics of "four or two and a thousand gold", and has attracted increasing attention from investors. In recent years, some criminals have gradually extended their illegal reach into the futures market, taking advantage of investors' mentality of chasing the rise and killing the fall, and implemented "fancy" manipulation through the futures and spot markets, distorting the futures market price, and converting the majority of futures investors. into the abyss.

Jiang is a typical representative of these criminals. Jiang was once the general manager of Company X, a domestic methanol trader, and he was long the "Methanol 1501" contract for hedging purposes. At the end of 2014, as the delivery month of the futures contract approached, the positions in the "Methanol 1501" contract gradually declined, and Jiang felt something bad. In order to make the spot market price of methanol meet expectations and ensure that long positions are successfully entered into the delivery month, Jiang used a total of about 400 million funds to increase contract buying positions in large quantities. In just one month, the proportion of buying positions accounted for the total market buying positions. It rose from 30.75% to the highest of 76.04%. The highest buying position was 62 times that of the second customer (439 lots) in the market during the same period, forming a clear advantage for long positions. At the same time, Jiang took advantage of Company The expected volume of contracts available for delivery is expected to further push up futures market prices.

Sure enough, by manipulating the combined effects of the futures and spot markets, many investors were deceived and went long on "methanol 1501". The contract price of "Methanol 1501" on December 3 increased by 8.9% compared with November 14.

 However, it is not as good as God. Because Jiang used too much capital, he was unable to add futures margin at a later stage, and the futures company implemented a forced liquidation of his position in accordance with regulations. A large number of contract sales caused a sharp drop in contract prices, triggering panic selling among investors. In just three trading days, contract prices fell as much as 19.1%. Investors who were deceived and followed the orders regretted it.

 In order to realize his own profit, another criminal named Liu shorted "Polyvinyl chloride 1501" through a large number of short positions, self-buying and self-selling, and continuous suppression. As a result, the market transaction price of "Polyvinyl chloride 1501" contract was different from the spot market. Prices deviated significantly. However, in the later period, the bullish forces dominated the market, and the contract price of "Polyvinyl chloride 1501" gradually returned to normal levels. Not only did Liu not benefit himself, but he also harmed the interests of the majority of investors.

If you go long or short on futures contracts based on reasonable expectations of market trends, this is normal investment behavior. The illegality of criminals is that in order to seek personal gain, they use their capital or position advantages to increase or suppress contract prices against the market, artificially distort futures product transaction prices, mislead investors in their investment decisions, and disrupt the normal market trading order. This is Violates the provisions of Article 40 of the "Regulations on Futures Trading" prohibiting manipulation of futures trading prices, constituting Article 71 of the "Regulations on Futures Trading" to continuously buy and sell contracts by concentrating capital advantages and position advantages, and using oneself as the trading partner. It is an illegal act to manipulate the futures market by buying and selling for oneself, or by hoarding spot goods in order to influence the futures market.

The futures market is highly professional and uses leverage trading. In addition to being familiar with the laws, regulations and rules of the futures market, investing in the futures market also requires corresponding professional knowledge, the ability to judge and predict the trends of the market and trading products, and the ability to predict the national macroeconomics. Once the situation has been grasped, macro factors and micro factors will be used to analyze the impact of supply and demand on the transaction prices of related products. Investors should make rational judgments about abnormal contracts and face them with a calm mind and rational thinking. They should not follow what others say and just follow the market price change signals to chase the ups and downs. If they accidentally fall into the trap of criminals, they will cause economic losses. . In addition, futures operating institutions should pay more attention to the suitability management of futures investors, so that investors with certain investment experience and risk tolerance can enter the futures market, help investors purchase suitable products, and effectively protect the legitimate rights and interests of investors.