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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 ORDERS ARE PROCESSED
COMMODITY FUTURES ORDERS
It is important to note that electronic
orders can be placed not only for electronic markets but for most pit traded
markets as well (open-outcry in a commodity trading pit on a regulated exchange
floor).
However, it is generally acknowledged
that price fills for orders placed electronically in markets that are pit traded
can take substantially longer to be reported back to the clients than orders
placed over the phone through a broker. This is because the electronic
order is routed to a FCM desk on the exchange floor where the order is
then relayed from a runner to the floor broker. The floor broker executes
the trade once the order criteria is met and reports the fill back to the
runner. The desk then reports the fill back to the FCM and
ultimately back to the trader. The process often gets delayed when the pits
get busy and filled orders are not promptly reported back electronically to the
clients.
For this reason, we recommend placing phone orders for markets that are mostly
pit traded to cut down on fill report times.
Electronic Markets. Orders
placed via computer for electronic markets are filled immediately when the order
price is breached or the order criteria is met. For phoned in market
orders, you may be able to hold on the line for your fill price depending on the
market. For all other orders, your broker will call you back to report the
fill price.
Pit Traded Markets. Orders
placed through the CFOS/FX brokerage desk via telephone are routed in one of two
ways. The CFOS/FX broker may call a desk directly in the pit and place the
order with a floor broker, or the CFOS/FX broker may call the FCM main
brokerage desk to place the order. Either way, for market orders you may
be able to hold on the line for your fill price depending on the market.
For all other orders, your broker will call you back to report the fill price.
FOREX ORDERS
Market Orders.
When the forex trader clicks on a price, he
or she creates an
initial order to open a foreign currency position at the current market price. Before the
initial order is submitted to the automated electronic dealing system, the forex trader must
confirm the order in an order
confirmation window. The price sent to the automated dealer will be the price that
was in the confirmation window at the moment the trader confirmed his or her
order. The
automated dealer receives the initial order and
automatically executes it if the available price is at
the requested price. The opened foreign currency position then appears on the client’s forex trading
platform. *Please note: depending on the FCM, traders may be
subject to automatic fills for market orders regardless of the price clicked.
Please check with your CFOS/FX broker regarding the fill policies of your
respective FCM.
Stop and Limit Orders.
A definition of stop and limit orders may be found
in the types of orders section of this website. Stop
and limit orders are triggered when market price touches the price specified in
the order. When this happens, the forex trading platform automatically sends an initial order to the
automated dealing system requesting that the order be filled at the specified price.
Orders may be re-quoted if the market price has moved away from the specified
price (please note that due to possible price gaps over the
weekend, slippage on Stop and Limit orders is possible when the foreign
exchange market opens
at 5pm EST on Sunday). Foreign currency FCMs do their best to provide execution
at the trader's specified price, however, during extremely fast markets, this sometimes is not possible.
*Please note: depending on the FCM, traders may be subject to
automatic fills for market orders regardless of the price clicked. Please
check with your CFOS/FX broker regarding the fill policies of your respective
FCM.
The minimum range between a new stop or limit order
and the market price is a function of current market volatility. It is obvious
that during, or immediately preceding, significant economic announcements
market volatility is greatly increased. As a consequence, most
foreign exchange FCMs have two options: (1) widening the spread on
foreign currency pairs, or
(2) increasing the entry, stop and limit re-quote ranges in order to reflect the degree of current market volatility.
Therefore, during extremely fast market moves you may notice that you are
unable to place or move any stop or limit order to within 3 pips of the
current market price - you may have to place your order further away due to
market volatility.
*Regarding re-quotes: If the price clicked by the forex trader
has changed (for example, market orders placed in a fast market such as the
weekly U.S. employment figures release time), the automated dealer will
instantly generate and send to the client a re-quote at the most current
market price. Clients can either accept or reject the re-quote within a
specified short amount of time. Market orders will never be executed at a price
other than the price the forex trader clicked on without the trader’s approval of a re-quote,
unless the client is utilizing the "range"
function. The range
function allows traders to
automatically approve re-quotes within a certain range. For example, if
the range function is set to 5 and a trader places a market order during an
extremely fast market, then the market order will automatically be processed if
the most current price is within 5 pips of the requested price. This would
allow the trader to automatically and instantly execute the order without having
to deal with a re-quote. *Please note: depending on the FCM,
traders may be subject to automatic fills for market orders regardless of the
price clicked. Please check with your CFOS/FX broker regarding the fill
policies of your respective FCM.
The reason for re-quotes is that many forex FCMs offset client orders
with counterparty banks and other liquidity providers that supply forex price feeds. During fast market
conditions, it can be extremely difficult to get set prices from these counterparty
banks. It is important for the client to understand how
and why order entry may change somewhat during
times of peak volatility because it can affect your bottom line.
*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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