It is a carrying charge market when there are higher futures prices for each successive contract maturity. If the carrying charge is adequate to reimburse the holder, it is called a ‘full charge’. Designation https://xcritical.com/ by a clearing organization of an option writer who will be required to buy or sell the underlying futures contract or security when an option has been exercised, especially if it has been exercised early.

• The requirement that FCMs keep customer funds such as margin deposits separate from the firms’ own funds.
• A provision applicable to futures traded on the CME’s Globex electronic trading system designed to prevent excessive price movements caused by cascading stop orders.
• An order to buy or sell a futures contract at whatever price is obtainable at the time it is entered in the order book, ring, pit, or other trading platform.
• The term “Introducing Broker-Dealer” or “Introducing Broker” shall mean the member firm that has been identified in the System as a party to the transaction, but does not execute or clear trades.
• The more active the client the more you’ll earn in rebates.
• They should give you the option to negotiate a personalised commission plan for introducing brokers.

The ability to control large dollar amounts of a commodity or security with a comparatively small amount of capital. A form of contract having a smaller unit of trading than is featured in a regular contract. In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. A head and shoulders top consists of a high price, a decline to a support level, a rally to a higher price than the previous high price, a second decline to the support level, and a weaker rally to about the level of the first high price. The reverse (upside-down) formation is called a head and shoulders bottom .

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The CBOT continued to use changers for former MidAm contracts traded on an open outcry platform. Transactions on a designated contract market or swap execution facility that serve as a substitute for transactions in physical marketing channel and reduce actual risks that a business would otherwise face related to the change in value of assets, liabilities, and services. Introducing brokers help increase efficiency and lower the work load for futures commission merchants.

Finding a regulated brokerage to partner with should be a high priority. Clients want safe trades and are concerned about scams. Partnering with a reputable broker with supervision from a regulatory agency is essential to keep clients happy and to protect your reputation, and most importantly ensures your success and will give you a great reputation in the long run. As well as being a trader, Milan writes daily introducing broker meaning analysis for the Axi community, using his extensive knowledge of financial markets to provide unique insights and commentary. Milan Cutkovic has over eight years of experience in trading and market analysis across forex, indices, commodities, and stocks. He was one of the first traders accepted into the Axi Select program which identifies highly talented traders and assists them with professional development.

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Refers to standards for market microstructure that all Swap Execution Facilities must offer. Generally, Minimum Trading Functionality requires SEFs to allow traders to execute transactions using an order book. A warehouse approved by an exchange from which a commodity may be delivered on a futures contract. A large trader is one who holds or controls a position in any one future or in any one option expiration series of a commodity on any one exchange equaling or exceeding the exchange or CFTC-specified reporting level. The maker, writer, or issuer of an option contract who, in return for the premium paid for the option, stands ready to purchase the underlying commodity in the case of a put option or to sell the underlying commodity in the case of a call option.

You introduce a client to ATFX through your website or marketing channels. You can do this by embedding unique links into your content and placing our banners on your website pages. A successful introduction happens after a client clicks on the link and signs up. Becoming an Introducing Broker for ATFX is an excellent opportunity to grow as our business partner and generate income. Becoming an Introducing Broker for ATFX is an excellent opportunity to grow as our ATFX business partner and generate income. The first year of your trading career is a critical period where you will experiment and explore plenty of things…

Introducing Broker Meaning & Definition

The term “Reporting Party” shall mean the Participant that is required to input the trade information, according to the requirements of the trade report input rules applicable to the System contained in Rule 7230B. The term “Introducing Broker-Dealer” or “Introducing Broker” shall mean the member firm that has been identified in the System as a party to the transaction, but does not execute or clear trades. Introducing Broker means any financial institution or advisor or legal or natural person obtaining remuneration from the Company and/or Clients for introducing Clients/interested parties to the Company.

There is no single best commission plan for Introducing Brokers. A professional securities dealer or person with trading privileges on an exchange who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders. By maintaining an offering price sufficiently higher than their buying price, these firms are compensated for the risk involved in allowing their inventory of securities to act as a buffer against temporary order imbalances. In the futures industry, this term is sometimes loosely used to refer to a floor trader or local who, in speculating for his own account, provides a market for commercial users of the market.

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The price recorded during trading that takes place in the final period of a trading session’s activity that is officially designated as the ‘close’. A brokerage enterprise that ‘books’ (i.e., takes the opposite side of) retail customer orders without actually having them executed on an exchange. An enterprise that often is operated out of inexpensive, low-rent quarters (hence the term ‘boiler room’), that uses high pressure sales tactics , and possibly false or misleading information to solicit generally unsophisticated investors. A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market, typically used as a measure of riskiness.

All of this information is covered completely in our series 24 and series 26 exam prep software, textbooks and video training classes. Make sure you are ready to pass your exam with our Greenlight exam pass guarantee. Futures commission merchants and introducing brokers in commodities are subject to the recordkeeping requirements set forth and cross referenced in this subpart. Futures commission merchants and introducing brokers in commodities should also refer to subpart D of part 1010 of this chapter for recordkeeping requirements contained in that subpart which apply to futures commission merchants and introducing brokers in commodities.

When was my last commission paid?

In 1998, Timber Hill Canada Company was formed, and IB began to clear online trades for retail customers connected directly to Globex to trade S&P futures. Hybrid instrument The term “hybrid instrument” means a security having one or more payments indexed to the value, level, or rate of, or providing for the delivery of, one or more commodities. An interdealer broker who brokers derivatives transactions via telephone, instant message, or similar means of communication. A contract that permits a position in the option market to be offset by a transaction on the opposite side of the market in the same contract. A commodity option transaction in which the purchaser is reasonably believed by the writer to be engaged in business involving use of that commodity or a related commodity. Usually synonymous with commodity exchange or futures market, specifically in the United Kingdom.

An order placed on an electronic trading system whereby only a portion of the order is visible to other market participants. As the displayed part of the order is filled, additional quantities become visible. An exemption from speculative position limits for bona fide hedgers and certain other persons who meet the requirements of exchange and CFTC rules. The spot or nearby delivery month, the nearest traded contract month.