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A Division of
Commodity Futures & Options Service, Inc. | ||||||||||||||||||||||||||
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We broker commodity futures, broker forex spot, broker forex options and broker OTC metals. For all of your online forex broker, online forex options broker, online OTC spot gold broker, online OTC spot silver broker and online commodity futures broker needs you only need one broker - CFOS/FX. All of the professional brokers at CFOS/FX are licensed by the National Futures Association and are qualified to provide you with the following services: forex broker, forex options broker, commodity futures broker, commodity options on futures broker, OTC spot metals broker, OTC spot metals options broker and forex and futures consulting. Commodity Futures and Options Service, Inc. is located in Houston, Texas. CFOS/FX provides both online and telephone brokerage services to retail and commercial clients. Customer satisfaction is our top priority and we look forward to having you as our client. |
HOW COMMODITY FUTURES MARGINS WORK
Margins are equity deposits that ensure the
credit-worthiness of both parties of a commodity futures contract. "Initial Margin" is
the term used to describe the minimum equity amount that must initially be in a
client's futures trading account to open a long or short position in a futures market.
Once a position is open, it is acceptable if the client's trading account balance drops
below the initial margin requirement. However, the trading account balance must
remain above the "Maintenance Margin" requirement. The "Maintenance
Margin" is the minimum equity amount a client must have in his or her account
before a "Margin Call" is generated. A "Margin Call" is a request
from a FCM for additional client funds to further guarantee
performance on a commodity futures position that has moved against the client. At the discretion of the FCMs,
margin rates may be increased from time to time to account for unexpected price volatility that can occur
in the commodity futures markets.
As permitted within the scope of National Futures
Association (NFA) and Commodity Futures Trading Commission (CFTC) regulations,
the FCM may, at its own discretion, close any or all open positions in a trader's account in the event that his or her trading account balance falls below the
maintenance margin (and a margin call is generated). It is the customer's
responsibility to monitor and maintain his or her margin account balances at all
times. You may keep track of your equity and usable margin on your account
statements.
Margin policies are further explained in the respective FCM Trading
Agreement.
Click on the following link to view our
Current Margin Rates.
Please feel free to contact us
to discuss the nature of leverage and margins to ensure
your complete understanding of the nature of trading commodity futures. *Disclaimer: Foreign exchange trading, foreign exchange investments and
commodity futures trading and investments are not suitable for
everyone. Forex trading and commodity futures trading carry a high level of
risk and the possibility exists that you could sustain a loss of
all or more of your currency trading or commodity futures trading investment. Before you decide to trade
foreign currency options, trade foreign currency spot markets or trade commodity
futures you should be aware of all
risks associated with currency trading and futures trading. If you
would like more information about the risks of forex trading, commodity futures
trading and of online forex trading and online futures trading, please
contact a CFOS/FX futures and forex broker to discuss online foreign currency trading risks
and/or commodity futures trading risks in
detail. | |||||||||||||||||||||||||
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CFOS/FX is a futures and forex broker offering online forex trading platforms in both spot forex and forex option trading markets as wells as OTC spot gold, OTC spot silver and commodity futures. The professionals at CFOS/FX broker forex spot contracts and broker forex option trading for both individual and commercial futures and forex clientele. CFOS/FX, as an entity, acts only as a futures and forex brokerage and does not actively manage futures or foreign currency trading accounts for clients. Regarding forex markets, CFOS/FX is a forex option broker and a spot forex broker acting an the Introducing Broker; CFOS/FX does not act as counter-party for client forex trading or forex option trading. | ||||||||||||||||||||||||||
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| Copyright 1988-2005 CFOS, Inc., All Rights Reserved. We broker forex options, broker forex spot, broker otc metals & broker commodity futures and options on futures. | ||||||||||||||||||||||||||