IB or FCM? (Introducing Broker or Futures Commission Merchant)?

5 stars based on 71 reviews

A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission.

A firm or individual who trades for his own account is called a trader. Commodity contracts include futuresoptionsand similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit. Ever since the s, the majority of commodity contracts traded are financial derivatives with financial underlying assets such as stock indexes and currencies.

When executing trades on behalf of a client in exchange for a commission he is acting in the role of a broker. When trading on behalf of his own account, or for the account of his employer, brokerage commodity firm future trading is acting in the role of a trader.

Floor trading is conducted in the pits of brokerage commodity firm future trading commodity exchange via open outcry. A floor broker is different than a "floor trader" he or she also works on the floor of the exchange, makes trades as a principal for his or her own account. IBs do not actually hold customer funds to margin. They advise commodity pools and offer managed futures accounts.

CTAs exercise discretion over their clients' accounts, meaning that they have power of attorney to trade the clients account on his behalf according to the client's trading objectives.

A CTA is generally the commodity equivalent to a financial advisor or mutual brokerage commodity firm future trading manager. A commodity pool is essentially the brokerage commodity firm future trading equivalent to a mutual fund. This is the commodity equivalent to a registered representative. From Wikipedia, the free encyclopedia. Retrieved from " https: Commodity markets Commodities used as an investment Brokerage firms. Views Read Edit View history.

This page was last edited on 9 Februaryat By using this site, you agree to the Terms of Use and Privacy Policy.

Strategi bank binarium

  • Trading signals and binary options robot free download 2014

    Highly profitable indicator for binary options

  • Forexcom leverage ratio

    Advantages and disadvantages of binary options trading thebinaryoptionsexperts

Forex trading bonus free

  • Forex and binary options trading haram it matters to muslim traders

    Stock market trading rules 50 golden strategies

  • Binary options trader review opciones binarias ventajas

    Free binary option service edmundston

  • Binary options experts trading signals lend me your expertise experts

    Aus forex brokers dubai

Ukoptions review

38 comments Binaire opties handel

Salary for a ceo a broker dealer

Enter your email for emails from BinaryTrading. org. The list soft for binary options features 17 companies.