China Futures Laws & Regulations cheat sheet
China Futures Laws & Regulations · Keep the key ideas within reach.
Role knowledge and relevant Chinese foundations
Distinguish contract value, premium and margin.
Apply the relevant rules to a shortfall or forced close.
A hedge reduces a specified exposure without eliminating every risk.
Separate client acknowledgment from authorization or a profit guarantee.
State direction, size, timeline and contract assumptions.
Payoff differs from profit after premiums and costs.
Hedging can introduce basis, liquidity and counterparty risk.
Margin is collateral and does not generally cap losses.