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Futures Technology 1630A 30th St # 365 Boulder, Colorado 80301 1-800-878-6070 303-442-6543 |
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| HOW TO GET STARTEDSELECTING A BROKER Futures and Options of futures contracts are bought and sold through brokerage firms. Your broker represents YOU - he or she will enter your order as you instruct and report the execution price back to you promptly. In addition, you may wish your broker to give you advice and help on various aspects of the market and to simply "be there" when you have questions. Before you place an order in the market you should feel totally comfortable with your choice. All brokers in the U.S. must pass qualifying examinations and receive a license before they are permitted to handle customer orders. You can check on the registration status of your broker, or "associated person," by calling the National Futures Association at 312-781-1410. Most discount houses don’t have licensed brokers taking and placing orders at their main orders desks. To be serviced by a licensed broker at these places you will have to pay a higher commissions rate. You get what you pay for. Would you go to a discount doctor for an operation? NO!!! So why would you go to a discount brokerage house and let them handle your money. It just doesn’t make good sense, when you can go to a professional brokerage house and get first class service for just a few dollars more. ACCOUNT PAPERWORK Now that you have found a broker who meets you needs, you will have to open a trading account. Opening an account can involve several steps. You cannot open an account until you’ve read and signed the risk disclosure statement, indicating that you understand the risks involved in futures and option trading. Other documents you will need to sign are a performance bond agreement (a statement that binds you to pay for any losses incurred in the course of trading) and a futures account agreement outlining how the account is to be handled by the broker. MARGIN DEPOSIT Before you open an account to trade futures and options, you must deposit cash or certain securities with your broker. The different commodities exchanges have established minimum initial and maintenance margin requirement levels for all markets traded. Some brokerage house’s requirements may be higher, but here at Futures Technology we only require the exchange minimum margins. Buyers of options pay the full price of the option and are not subject to margin minimums. MARKING OPEN CONTRACTS TO THE MARKET At the end of each trading day and all following days that your position remains open, the contract value is "marked-to-the market", your account is credited or debited based on that day’s trading session. If your account falls below the maintenance level (a set minimum margin level per outstanding futures trade), your broker will contact you for additional funds to replenish it back to the initial margin level. COMMISSIONS Commission cost vary according to the services provided by the brokerage firm. For futures and options contracts, the commission is normally a "round-turn" fee charged to cover the trades you make to open and close each position. On futures half of the commission is payable when your entry order is filled and the other half is payable when you exit the position. On options the full round turn commissions is payable when you enter the trade. There is no commission cost to place an order, it only cost if the order gets filled. FINANCIAL SAFEGUARDS OF THE EXCHANGES The exchanges use sophisticated risk management and financial surveillance techniques to protect exchange members and customers from default on futures and options contracts. The Exchange Clearing House acts as the third party to every trade (the seller to every buyer and the buyer to every seller), thus ensuring the integrity of all trades. The exchange is financially backed by its clearing members as well as a special Trust Fund.
The Rules and Regulations of the different Commodity Exchange should be consulted as the authoritative source for information, rules and contract specifications. PLEASE NOTE THAT THERE IS AN INHERENT RISK OF LOSS ASSOCIATED WITH TRADING FUTURES AND OPTIONS CONTRACTS. EMPLOYEES OF FUTURES TECHNOLOGY, LLC PROVIDE INFORMATION BASED ON SOURCES WE CONSIDER RELIABLE, BUT THERE IS NO GUARANTEE THAT THE INFORMATION WE PROVIDE WILL RESULT IN PROFITABLE TRADES. PLEASE CAREFULLY CONSIDER YOUR FINANCIAL CONDITION BEFORE INVESTING IN FUTURES AND OPTIONS CONTRACTS. FUTURES TRADING IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARY INDICATIVE OF FUTURE RESULTS. This Site is Designed, Built and
Maintained by Jerry Hodges |
