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Saturday, June 11, 2011
BlogDreamer
The popularity of trading futures and options has been growly rapidly for several years. The availability of online data is constantly updated fever was increased by day traders to try to succeed and make money on this risky investment area. Individuals can now trade these markets with the same ease and speed of large companies.
Forex Trading (exchange) and commodities and options is not for everyone. This is a complex and risky work, experience and value of the volatile price fluctuations. Before you invest money in forex, futures or options contracts on the market, you must:
• Consider the experience of financial trading, objectives and financial resources and know how much you can afford to lose above and beyond your initial payment.
• Futures contracts for commodities and understand their obligations and options before committing your finances in commercial contracts.
• Understand your risk exposure and aspects of the negotiations, examining in depth the risk disclosure documents your broker is obligated to give.
• know who to contact if you have a problem or question.
• Ask more questions and gather more information before opening an account.
The commodity futures and options contracts:
A futures contract is a legally binding agreement between two parties to buy or sell a financial product or a product in the future, on a designated exchange, a specific quantity of a commodity at a specified price. The buyer and seller of a futures contract is an agreement today on the price of a product to be delivered or paid in a particular time and date stated in the future, which is known as "settlement day." The actual delivery of goods can take place in the contract, but most contracts are actually closed or "offset" before delivery.
An option on a futures contract is a legally binding agreement between two parties giving the buyer pays a price determined by the market is known as a "bonus" to the right (but not the obligation) in a prescribed time to exercise its control. The exercise of the option will result in the person deemed to have entered into a futures contract at a specified price known as the "strike price." In some cases, an option entitles the holder to buy or sell the underlying asset directly, and these options are called options on physical assets.
United States, a person can not trade futures and options on futures contracts directly on an exchange. A person or company shall act on your behalf. People and companies acting on your behalf as a customer generally must be registered with the Commodity Futures Trading Commission.
Two major categories of operating accounts:
-A personal account. In an individual account, the trade is made just for you. customer's personal account can be configured as a "non-discretionary" or "discretionary". account 'Absolute' means that you have all the trading decisions and the broker can transact without the prior written permission and consent. "Discretionary" personal account means that the consent to the broker firm performs its own account or for third parties to make trading decisions on your behalf.
You can open an individual account registered Futures Commission Merchant or Introducing Broker. Introducing Broker may accept orders and send them to the chief executive of the Futures Commission Merchant with the introduction of the broker has a relationship. You can deposit funds directly to the Futures Commission Merchant. In an individual discretionary account, you grant power of attorney, the Futures Commission Merchant, Broker presentation of one of their associated entities, or a Commodity Trading Advisor to make trading decisions on your behalf.
You can also trade in products through a "commodity pool." That means you buy a share or interest in the pool, and transactions are executed by the group as a whole, rather than for people who have interests in the pool. Pool participants share profits or losses.
If you have a dispute or problem arises on account of commodity futures or option, first try to resolve the problem with your broker.
A checklist "Before Trade":
-Clearly identified your financial goals, including the amount of risk and loss you can handle?
-Determine how much assistance and help you can from a business consultant to make business decisions?
-Checking registration status and disciplinary history adviser or choose swimming with the National Futures Association?
-Receipt and review of the disclosure document - before opening an account?
-Understand the disclosure document, including a statement of fees, the potential loss of your right to withdraw your money and business case?
-Be sure to ask for what you do not understand. Remember, it's your money, make sure you know where its going.
Forex Trading (exchange) and commodities and options is not for everyone. This is a complex and risky work, experience and value of the volatile price fluctuations. Before you invest money in forex, futures or options contracts on the market, you must:
• Consider the experience of financial trading, objectives and financial resources and know how much you can afford to lose above and beyond your initial payment.
• Futures contracts for commodities and understand their obligations and options before committing your finances in commercial contracts.
• Understand your risk exposure and aspects of the negotiations, examining in depth the risk disclosure documents your broker is obligated to give.
• know who to contact if you have a problem or question.
• Ask more questions and gather more information before opening an account.
The commodity futures and options contracts:
A futures contract is a legally binding agreement between two parties to buy or sell a financial product or a product in the future, on a designated exchange, a specific quantity of a commodity at a specified price. The buyer and seller of a futures contract is an agreement today on the price of a product to be delivered or paid in a particular time and date stated in the future, which is known as "settlement day." The actual delivery of goods can take place in the contract, but most contracts are actually closed or "offset" before delivery.
An option on a futures contract is a legally binding agreement between two parties giving the buyer pays a price determined by the market is known as a "bonus" to the right (but not the obligation) in a prescribed time to exercise its control. The exercise of the option will result in the person deemed to have entered into a futures contract at a specified price known as the "strike price." In some cases, an option entitles the holder to buy or sell the underlying asset directly, and these options are called options on physical assets.
United States, a person can not trade futures and options on futures contracts directly on an exchange. A person or company shall act on your behalf. People and companies acting on your behalf as a customer generally must be registered with the Commodity Futures Trading Commission.
Two major categories of operating accounts:
-A personal account. In an individual account, the trade is made just for you. customer's personal account can be configured as a "non-discretionary" or "discretionary". account 'Absolute' means that you have all the trading decisions and the broker can transact without the prior written permission and consent. "Discretionary" personal account means that the consent to the broker firm performs its own account or for third parties to make trading decisions on your behalf.
You can open an individual account registered Futures Commission Merchant or Introducing Broker. Introducing Broker may accept orders and send them to the chief executive of the Futures Commission Merchant with the introduction of the broker has a relationship. You can deposit funds directly to the Futures Commission Merchant. In an individual discretionary account, you grant power of attorney, the Futures Commission Merchant, Broker presentation of one of their associated entities, or a Commodity Trading Advisor to make trading decisions on your behalf.
You can also trade in products through a "commodity pool." That means you buy a share or interest in the pool, and transactions are executed by the group as a whole, rather than for people who have interests in the pool. Pool participants share profits or losses.
If you have a dispute or problem arises on account of commodity futures or option, first try to resolve the problem with your broker.
A checklist "Before Trade":
-Clearly identified your financial goals, including the amount of risk and loss you can handle?
-Determine how much assistance and help you can from a business consultant to make business decisions?
-Checking registration status and disciplinary history adviser or choose swimming with the National Futures Association?
-Receipt and review of the disclosure document - before opening an account?
-Understand the disclosure document, including a statement of fees, the potential loss of your right to withdraw your money and business case?
-Be sure to ask for what you do not understand. Remember, it's your money, make sure you know where its going.
