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  • Q1: What do you think of the recent dramatic increase in the volume of mock tr...
    2010-11-24
  • Q2: What do you think of the margin requirement of CSI 300 Stock Index Futures?
    2010-11-24
  • Q3: Why should we know CSI 300 Index before trading CSI 300 Index Futures?
    2010-11-24
Q5: Is the price limit of stock index futures 10% or 20%?
2010-11-24

Similar to that on stock market, to safeguard the normal trading on the market, a daily price limit is set for stock index futures, with the details as follows: firstly, the price limit of stock index futures contract is ±10% of the settlement price on the last trading day. Secondly, the price limit of the contracts on quarterly months on the first trading day is ±20% of the listing base price. If there are deals made on the first trading day, the price limit stipulated in the contract will be adopted on the next trading day. Otherwise, the price limit on the previous trading day will be resumed on the next trading day. Thirdly, the price limit of the stock index futures contracts on the last trading day is ±20% of the settlement price on the previous trading day.

It can be learnt that the daily price limit of stock index futures is generally ±10%, which is the same with that on stock markets. The uniqueness of stock index futures lies in its price limit on the first trading day of contracts on quarterly months as well as the last trading day of contracts of all kinds, which is ±20%. This arrangement is the result of the reference to relevant regulations in domestic and foreign futures exchanges and the consideration that the fluctuation of contracts on quarterly months may be greater than that of nearby-month contracts, which not only are conducive to the convergence of the futures price towards the spot price on the expiration day but also satisfy the market demand and secure the steady market operation. It is also noticeable that the price limit of stock index futures is based on the settlement price on the previous trading day, or the base price on the first trading day rather than the closing price on the previous day, which is different from that on stock markets.

Thus, investors are expected to have a correct understanding of the contents and ranges of the price limit system of stock index futures.