Normal trading hours at the DCE are Monday-Friday, 9AM-11:30AM and 1:30PM–3:00PM Beijing Time. For a more detailed trading schedule including holiday closures, please look here.
Types of orders at the DCE
There are two types of orders at the DCE: basic orders and non-basic orders. Basic orders include: limit orders, market orders, stop orders and limit stop orders. Non-basic orders include spread orders. The maximum number of contracts for each order of No.1 soybeans, No. 2 soybeans, soybean meal, soybean oil, RBD palm olein, LLDPE and PVC is 1,000; the maximum number of contracts for each order of corn is 2,000.
Orders at the DCE have three characteristics: good-for-day (GFD), fill-or-kill (FOK) and fill-and-kill (FAK).
? GFD: an order that expires if it is not executed before the close of trading on the day it was entered.
? FOK: an order in which the entire amount of the order must be immediately filled at the specified price or cancelled.
? FAK: an order in which a trade must be carried out immediately at a specified price, and any excess orders which cannot be filled at that price are then automatically cancelled.
? Limit order: A limit order is an order in which the investor clearly specifies both the price and number of contracts.
? Market order: A market order is an order in which the investor specifies only the number of contracts, so that the order may be transacted as soon as possible.
? Stop order: A stop order is an order that becomes a market order only if the contract's market price reaches the investor's specified price level. A stop order can open or close a position.
? Stop limit order: A stop limit order is an order that becomes a limit order only if the contract's market price reaches the investor's specified price level. A stop limit order can open or close a position.
Spread Order: A spread order is quoted in the form of a spread between two futures and may only be in the form of a limit order at the DCE. There are two types of spread orders at the DCE: calendar spread and intercommodity spread An investor may use exchange-specified contracts to easily place a spread order. If the DCE does not specify the desired spread contracts, an investor may use a series of limit orders to customize a spread order.
There are three ways to place an order
1.Written order: Fill out the order
2.Phone order: Provide the client’s details and order type/amount
3.Electronic oder: Directly place order through the internet
The customer’s order enters the trading market through the respective brokerage firm.
The computer matches up orders on the basis of price and time priority .
After the trade has been made, the computer automatically provides a report that displaysthe price and transaction volume.
Every trading day, the exchange will clear each member in order to check all of the trades.
Brokerage members must also clear their clients to guarantee that all trades were correctly carried out.
Gains and losses,fees and margins are cleared on a daily basis.
After the member has been cleared,the member’s funds will be digitally transferred to the clearing bank.
Clearing process is basically the same as above, with fees according to the regulations.
Brokerage members must provide clients with a daily clearing report.