Electronic futures trading broker canada
Client Financial Requirements FCMs often require their customers to meet certain financial conditions before the firm will agree to fill futures or options contract orders. Clients are required to have a certain minimum gross income or net worth.
A minimum operating line electronic futures trading broker canada credit or bank cash deposit may also be required. These conditions are in effect to protect FCMs from clients who are not serious or who are in financial trouble.
Some of these guidelines may be reduced or waived under certain conditions, especially for clients who only plan to hedge in their trading accounts. Contacts may provide background information on market news that is not otherwise readily available. Generally, commissions are not a high-cost item. Compare all services offered by various companies before choosing a firm based on low commission.
The objective is to make a profit for the client. However, the client, not the brokerage firm, covers any losses. For more information about the content of this document, contact Neil Blue. This document is maintained by Erminia Guercio. This information published to electronic futures trading broker canada web on February 15, Introduction Farm managers planning to use futures and options as part of their marketing plan must use a commodity broker to buy and sell their futures and options.
An experienced broker, also known as a Futures Commission Electronic futures trading broker canada FCMcan be a very valuable asset to the farm manager. Step One in choosing a FCM is deciding what level of service and advice is needed. Some farm managers want a broker whose firm provides market background electronic futures trading broker canada outlook information.
Trading costs are normally higher for companies who provide additional services. Step Two in choosing a broker involves talking to several firms and their brokers either by phone or in person. Talking to more than one broker at each firm helps you choose a broker you are comfortable with on a personal level, which is also important.
Some firms have several FCMs in their offices. Often each FCM has a different area of interest. Some deal mostly in industrial commodities or financial futures, while others concentrate mostly on agricultural commodities. FCMs tend to have an interest in either hedge accounts to lock in the price of a product or in speculative trades. Client Protection FCMs, who accept futures and options trade orders on behalf of Alberta farmers, must be registered with the Alberta Securities Commission or the Investment Dealers Association, or both.
These registrations require that each FCM follow certain accounting standards and procedural practices and that the firm is financially secure. Each firm must file quarterly and annual financial statements. A chartered accounting firm also audits each firm annually. A clearing broker is employed by a company that has holds the right to trade directly on the various commodity exchanges. The clearing broker also maintains margin accounts directly with the futures exchanges and is directly responsible for ensuring adequate funds are maintained in these accounts and if not, ensures the customer acts on margin calls.
An introducing broker takes futures and options orders from customers and relays electronic futures trading broker canada to a clearing firm to have the orders filled at the exchanges. The introducing broker electronic futures trading broker canada uses the clearing firm for depositing funds and ensuring that margin requirements of the exchanges are maintained.
If an introducing broker goes out of business, the clearing broker handles customer futures and options positions. An introducing broker will transmit trades through the head office of electronic futures trading broker canada or her clearing broker. CME Feeder Cattle futures, on the other hand, electronic futures trading broker canada during the same day-time hours for both the electronic system and in the trading pits, as there is no overnight electronic session. Customers wanting to trade at exchanges where there are both electronic and pits trades have the choice of where they want their trade executed.
Normally, FCMs will place orders on the electronic system unless customers specifically dictate they want their trade in the pit. Pit trading is gradually being phased out and replaced with electronic trading Client Financial Requirements FCMs often require their customers to meet certain financial conditions before the firm will agree to fill futures or options contract orders. Introduction Client protection Introducing and clearing brokers How trades are carried out Client financial requirements Good brokers Return to Marketing Risk Management page.