Futures and options trading ppta


By law, futures brokers do not have the authority to take customer funds and hold them in deposit. The clearing corporation's elimination of such counterparty credit risk provides a great benefit to the futures and options markets. Futures and options trading ppta answer lies in the margin deposit that every other futures trader must make before trading any contract. Matching these two together so that a trade can be consummated requires the participation of a host of individuals and organizations, each having specific roles, which in the aggregate make the futures market futures and options trading ppta efficient mechanism that it is today.

The primary purpose of the NFA is to ensure, through self-regulation, high standards of professional conduct and financial responsibility on the part of the individuals and organizations that are its members: In a literal sense, it stands as a buyer to futures and options trading ppta seller and a seller to every buyer. Trading occurs against a background of regulatory surveliance and guidelines from the exchange itself and from the Commodity Futures Trading Commission CFTC.

Contract specifications can sometimes be changed by the exchange, and is usually done to keep the contract viable. Some exchanges also use automated trading facilities or computer networks which serve as trading pits. The answer is "NO".

What happens if that person cannot pay? No trading may occur outside a contract's assigned pit, nor is trading futures and options trading ppta at any time other than during those hours which have been designated by the exchange. The trading pits are each divided into a number of sections designated for trading in particular contract months. For this reason, a futures broker needs to team up with an FCM in order to provide order execution services to its customers.

Working with participants in the industry such as traders, fund managers and natural hedgers, a futures exchange designs a contract to meet the greatest need. For every buyer, there is a seller and for every seller, there is a buyer. Naturally, few people would trade futures if it required that they stand futures and options trading ppta the trading pit.

Trading occurs against a background of regulatory surveliance and guidelines from the exchange itself and from the Commodity Futures Trading Commission CFTC. To solve this problem, in futures and options trading ppta the futures broker. Contract specifications can sometimes be changed by the exchange, and is usually done to keep the contract viable. By law, futures brokers do not have the authority to take customer funds and hold them in deposit. You may have wondered who determines these specifications.

A futures and options trading ppta exchange is a meeting place where futures contracts are bought and sold. What happens if that person cannot pay? The clearing corporation's elimination of such counterparty credit risk provides a great benefit to the futures and options markets. It is a mark of distinction for an FCM to be a clearing member.

Each exchange has its own futures and options trading ppta of products that it trades, and each product is traded in a designated futures trading pit. One may wonder how the clearing corporation does this. The answer lies in the margin deposit that every other futures trader must make before trading any contract.