In recent years, many investors found out the hard way they have very little recourse to recover funds in the event of a financial firm’s bankruptcy. Although the Bernie Madoff “hedge fund” was by far the highest profile case, there were numerous less publicized bankruptcies and defaults at other firms and investments (including legitimate ones), in which investors found recouping remaining funds difficult or impossible. Sometimes it’s a case of being the last in line of a long list of creditors, a problem that’s compounded when customer funds aren’t separated from a firm’s funds. Such “commingled” funds might have been used to fund the firm’s operating expenses or in its own trading. If a firm enters bankruptcy, it can be very difficult or impossible to recover customer funds that were commingled in such a fashion.

However, all futures trading accounts, including managed futures, have the advantage of specific industry rules that require the segregation of customer funds from the firm’s own funds. The practice of segregating customer funds protects investors in the event of default at the Futures Clearing Merchant (FCM, the industry term for futures brokerage firms licensed to trade on futures exchanges in the U.S.) holding their account. While FCM bankruptcies are rare, they do occur. In 2005, Refco Inc. and 23 of its unregulated subsidiaries filed for Chapter 11 bankruptcy protection. However, Refco’s regulated subsidiaries (where customers’ futures trading and managed futures accounts resided) were unaffected and customers were able to continue trading and managing their accounts.

Investment Risk and Firm Risk

Although first-time managed futures investors might assume they’re depositing money directly with the commodity trading advisor (CTA) running the fund, in fact, customers open an account in their own name at an FCM. The CTA is then given the authority to trade per the fund’s investment strategy. Segregated funds possess a separate identity from FCM funds in the firm’s bank account. Once funds are deposited, the bank signs a written acknowledgement stating it will not use the funds for anyone other than the customer. Also, the FCM is required to use these funds only in certain pre-defined instruments. The end result is that, in the event of a crash or FCM bankruptcy, customer funds can be more easily recovered.

FCM Reporting Requirements

Segregated funds are subject to stringent daily, monthly, and annual monitoring by industry regulatory agencies. Every day, FCMs must submit a report to the National Futures Association (NFA) detailing the breakdown of their customer funds. This “Segregated Investment Detail Report” (SIDR) lists the actual and expected segregated funds in the FCM’s accounts. In addition, every FCM must file monthly financial reports with the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Intermediary Oversight (DCIO) within 17 business days after the end of the month. Finally, the FCM is subject to a yearly audit by the Joint Audit Committee, a consortium of U.S. futures exchanges and regulatory organizations.

CFTC oversight

The provision for segregated funds is stipulated in the Commodities Exchange Act. As a result, the CFTC, which is the futures industry equivalent of the Securities and Exchange Commission (SEC), regulates all practices for segregated funds. Any case of malpractice results in an administrative proceeding before a CFTC law judge. If an FCM is found guilty of the charges, the CFTC can suspend or revoke trading privileges, assess penalties, or issue cease and desist orders. There have actually been very few malpractice cases; most are the result of technical or processing difficulties within an FCM, or a delay in reporting. For example, the CFTC imposed a civil penalty of $300,000 in 2009 on a large FCM for violating rules related to segregation. Besides reporting process violations, the CFTC charged the company with not holding enough funds in its customer funds account. (The shortfall occurred because the FCM had purchased Treasury notes between 2007 and 2009 using a mix of its own and customer funds.) In response to the charge, the firm established a “segregation forecasting mechanism” to ensure that proper segregation was maintained between customer and company accounts. Before making any investment in futures or managed futures, investors should research the company where they plan to open an account. The NFA makes this research easy at the BASIC (Background Affiliation Status Information Center) section of its website.

Dean Hoffman

*Source – CME Group

(PRWEB) August 18, 2005

Online trading guru Chris Kobewka thinks it is a simple matter to make money trading the markets. Particularly that online futures trading is easy. Not only that, he believes he can teach anyone to be successful with his trading system. Chris is the author of one of the internets hottest selling online futures trading systems dealing with commodity futures and forex trading. He is adamant that even the “little guy” can trade with small stakes, starting with just a 0 account if necessary. Too good to be true? He can prove it: check out http://trading-reviews.blogspot.com/

In his first month online futures trading, Chris turned a starting stake of 0 into over ,800. Since then his performance has continued at a more realistic level and despite losing the odd trade every month continues to return a very reasonable profit. His overall success stands at over 90% winning rate. I’m not aware of any other trading strategy which can maintain this level of success. Unlike others out there, he doesn’t promise to make one a fortune overnight.

Whether online day trading or taking the more traditional approach, with the advent of the internet, commodity futures trading is no longer the jealously guarded esoteric province of the ”big boys”. Not surprisingly, many savvy online traders appear to be backing Chris – his site is ranked by Alexa as one of the busiest on the net.

Can it really be this simple? His satisfied clients would appear to think so! It would seem that there are a lot of people out there just longing for the chance to become online trading whiz kids. Who knew?

Interestingly, the image of the middle class ‘’yuppie’’ doesn’t hold up with online trading; it could be the housewife living next door to you, or the retired factory worker supplementing his pension. There is no stereotype in the online trading world. The only sure thing is, it’s definitely booming!

Personally I think it can only be a good thing if more ”little guys” get the opportunity to trade safely without requiring a degree in economics or a huge bank balance. Though I don’t imagine the ‘’big boys’’ are too thrilled at Joe Public muscling in on their turf.

Ah, the internet is such a wonderful thing!

http://trading-reviews.blogspot.com/

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Port St. Lucie, FL (PRWEB) August 20, 2006

T & K Futures believes that the two greatest enemies for futures traders who are option buying investors, besides themselves, are time decay and volatility premium. It amazes the company that many people have never heard of these key components of option value. Options are by their very nature a wasting asset. Given a flat market scenario, they lose premium value daily. The only way for an option purchaser to make money is for the value of the option premium to increase more relative to the time decay of that option.

What is volatility premium? When one buys and option (call/put), they are buying the right to buy or sell from an option grantor. They collect the premium that one pays for the option. They hope that the person loses because if that happens they win. This is the whole zero sum investment thing people have heard about. The option grantor takes on the lion’s share of the financial risk because while people are only liable for the premium that one pays for the option they are liable for the value of the contract.

So they increase the price of the option premium to offset their risk relative the volatility of the market. The more price movement in the futures market where people purchase an option, the more volatility risk the grantor is taking. In other words, the chances to reach strike price objectives are more attainable so the grantor charges more.

Past performance is not indicative of future results. Futures trading and option investments are risky and people can lose money. Use only risk capital when investing in futures or options.

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

(PRWEB) February 4, 2010

Schapiro Global announced that it has signed its first introducing broker agreement with Martin Eckhart – the reputable Futures and hedging specialist – giving a world of Futures enthusiasts a reason to celebrate.

Schapiro’s unique trading platform offer users a whole new trading experience, free practice accounts, high-quality customer service and a place in the Schapiro trading community. By signing the agreement, costumers of CNMEX will now be able to open real Futures trading accounts through Schapiro’s’ platform.

Established in order to provide services to the growing retail sector of the Futures community, Schapiro created and developed a visual interface to the CNMEX’s trading platform that is easy to understand and easy to use. The overall entertaining tools that Schapiro uses in order to provide its users with the most inclusive trading experience are available to both novice and experienced traders, so they can experiment, further learn, and master the exciting world of financial trading.

Schapiro is a respected international Futures trading company, founded by a team of risk management professionals. Using their sophisticated backend hedging and trading technologies, they provide professional Futures trading backend capabilities to clients worldwide.

Day traders will be able to open real trading accounts without the need of dealer’s intervention. Furthermore, from now on, Schapiro’s costumers can benefit from the unique features of the new Schapiro Trading Platform interface.

Schapiro will continue aiming to partner with further Futures firms in upcoming weeks in order to broaden its services to a wider global audience.

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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Port St. Lucie, FL (PRWEB) September 26, 2007

T & K Futures and Options believe that the recent interest rate cut by the US Federal Reserve Bank and monetary interventions by many central banks around the world will lead to a dramatic rise in the current inflation rate. These central banks added liquidity to offset the negative effects that the sub-prime US mortgage collapse may have on the stock markets around the world. However, this excess liquidity might also cause extreme monetary inflation and drive many commodity futures prices much higher.

When the supply of a currency goes up the value of that currency usually decreases. When this happens, it takes more of the currency to purchase the same amount of a commodity. This is called inflation. Some examples are the rising costs for fuel, fertilizer, feed and pesticides faced by US grain and livestock producers. Each dollar purchases less of these necessary commodities which in turn drive the costs of grain and livestock production higher. Consumers are then forced to pay more for the commodity and their dollars buy less. Now consider that the world’s energy and food demands are increasing exponentially because of population growth and a higher quality of living that is being experienced around the world but especially in India and China. Commodity futures prices and the current inflation rate may very likely increase dramatically over the next few years.

We believe that commodity futures prices will continue to rise and the current inflation rate will rise dramatically over the next few years as higher demand for commodities continues. In the meantime, we expect volatile commodity futures prices and many opportunities for commodity futures trading. Interest rate futures, currency futures and stock indices can expect extreme volatility over the next few months. We also believe that commodity futures prices for energy and food will be very volatile for the next few years. Volatility is a double edged sword and can work against you as well as for you so make sure that you are not undercapitalized and manage you risk effectively before beginning any commodity futures trading campaign. Visit http://www.tkfutures.com/education.htm to learn more about the mechanics and risks involved in commodity futures trading.

The author of this article is a 14 year veteran of the commodity futures trading and commodity options market and the president of T & K Futures and Options Inc.

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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Forex and Futures Trading Education

Mount Pleasant, SC (PRWEB) September 1, 2010

Your Trade Room and YTR have partnered up to bring the latest advancement in Forex and Futures Trading Education.

With the Glob Prop Trader individuals selected have the chance to trade YTR’s capital with no risk to their own. In addition, they share in up to 90% of the profits for the first 12 months and none of the losses. This new program is designed to reinforce professional trading behavior with defined levels of advancement. The GPT traders have access to all current strategies and three new strategies that have been especially designed for the GPT program.

As someone advances (12 levels total) through the program they are allowed more currency to trade up to 3 million. Individuals will not be alone through this advancement. They will be receiving a fantastic trading education via the 24 hour live trade room, twice daily market recap, 6 days a week live classrooms, intimate group strategy coach calls, and a comprehensive trading library (videos, manuals, etc).

Your Trade Room is dedicated to bring individuals the best Forex Trading education possible. Their brand new user friendly website is tribute to that. The new site offers:

Premium/Free Video Newsletter – Daily market commentary, weekly advanced trading videos on Forex and Futures, weekly basic trading videos, and its only .00 a month for a limited time.

A Free Trading Ebook – “The Truth About Day Trading” Learn the basics of FOREX, and gain an understanding of different forms of analysis available to traders. This skillfully written, 172 page e-book will be a great value to those who are just discovering the currency trading market, as well as those who want to have a greater mastery of Forex tools.

Free Trading Webinar – Every week Your Trade Room gives a webinar on Forex and Futures trading. This webinar also goes into detail of YTR’s fantastic education programs.

•Trading Blog – Your Trade Room’s blog bring you articles and insights into Forex and Futures trading.

With all of this combined Your Trade Room makes it hard to fail in the world of trading. Contact Randy Rodenhouse for more information on all of these products and services.

Your Trade Room

843-754-8174

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Chicago, IL (PRWEB) September 2, 2007

Lind-Waldock, the leading futures and options brokerage firm for individual investors, will present several introductory seminars on commodity futures trading at WizeFEST® in Dallas on September 5-8, 2007. This marks the second year Lind-Waldock will be exhibiting at WizeFEST and educating individuals interested in investing in commodities. WizeFEST is an annual trading convention hosted by Dallas-based GlobalTec, an industry leader in providing trend recognition software and training for individual investors.

David Howe, Lind-Waldock’s Director of Sales, will present “Intro to Commodity Futures,” on Thursday, September 5, at 7:00 p.m. CT, and also on Friday, September 7, at 12:05 p.m. He’ll explore how commodities offer a compelling alternative investment choice, and discuss the risks and rewards involved. Seminar attendees are eligible to win a free iPhone or digital camera in a special prize drawing. Howe also will be on hand at Lind-Waldock’s booth on the WizeFEST midway with other representatives to answer questions about futures and options trading all three days of the conference.

Since 1999, GlobalTec has trained more than 150,000 people to trade using its trend recognition software suite, which includes GlobalTec’s flagship product, Wizetrade® software for stock traders, and Commodity Explorer software for trading commodities.

“We’re looking forward to our second year at WizeFEST. Last year marked our introduction as an integrated broker for the GlobalTec’s Commodity Explorer software. I was pleased to see the people at GlobalTec place such a high level of importance on education and service. Our two companies share a common goal of putting the customer’s needs first,” said Howe.

Lind-Waldock has teamed up with Commodity Explorer to offer a custom, seamless futures trading experience with direct access to Lind-Waldock’s order-entry systems. Investors wishing to trade commodity futures markets using Commodity Explorer experience a user-friendly, integrated online trading solution with Lind-Waldock. For more information, go to http://www.explorecommoditiesatlind.com.

This year’s WizeFEST will take place this year at the Dallas Hilton Anatole Hotel. WizeFEST brings together traders from across the globe. Although GlobalTec promotes this event as a chance to express their gratitude to their customers, they welcome current customers and non-customers alike to this exciting event. Register online at http://www.wizefest.com.

About Lind-Waldock

Lind-Waldock is a leading futures broker for individual traders and investors, and is the leader in providing education and information on futures for individuals. The firm’s offerings include a book, The Complete Guide to Futures Trading, a monthly futures trading e-newsletter, educational free webinars available live, as well as archived via video and audio podcasts, information via RSS feeds, and free simulated trading and free commodity quotes and charts on its Web site at http://www.lind-waldock.com. The firm has been in business since 1965 and conducts business for thousands of clients on futures exchanges around the world, offering access to electronic, open-outcry and EFP markets..

Lind-Waldock is located at 141West Jackson Boulevard, Suite 1400-A, Chicago, IL 60604. Call 800-445-2000 for information.

Futures trading involves the substantial risk of loss and may not be suitable for all investors.

Source: Lind-Waldock

CONTACT: Susan Gidel, Director of Marketing, Lind-Waldock, 312-788-2850, sgidel @ lind-waldock.com.

Web site: http://www.lind-waldock.com/

Past performance is not necessarily indicative of future trading results. Trading advice is based on information taken from trade and statistical services and other sources which Lind-Waldock believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder.

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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Chicago, IL (PRWEB) October 17, 2005

Rockwell Trading, Inc., an educational advisor to investors who want to make money with futures trading systems, today announced that it has become Strategy Runner’s largest trading system vendor.

Rockwell Trading has reached this milestone just six short months after joining forces with Strategy Runner, the premier platform for the automated execution of futures trading systems. Futures traders who would like to learn more about Rockwell Trading’s automated systems can visit the company’s website at http://www.RockwellTrading.com.

Strategy Runner currently partners with 15 trading systems providers, which together encompass nearly 40 different trading systems. The successful introduction of the Coin Collector and Andy’s Open Bar trading systems has placed Rockwell Trading as Strategy Runner’s leading trading systems partner.

Strategy Runner’s server-based trading platform is the perfect complement to Rockwell Trading’s futures trading systems. The partnership has enabled Rockwell Trading to offer its customers a host of advantages, including automated placement of orders and worry-free order execution. Rockwell Trading offers a wide range of trading systems, covering the e-mini S&P, Dax, EuroStoxx and Bund markets.

Rockwell Trading customers aren’t the only ones profiting from the partnership, however. Strategy Runner has also witnessed increased interest since Rockwell Trading joined its trading systems mix. When asked about the partnership, Oded Rochman, Strategy Runner’s Vice President, responded with nothing but praise. “We are proud to have Rockwell Trading as one of our partners. The guys at Rockwell Trading are always professional and they provide excellent customer support. It’s no surprise that within just a few short months of collaborating with us they have become our biggest partner.”

For more information on Rockwell Trading, Inc.’s partnership with Strategy Runner, contact Markus Heitkoetter toll-free at (866) 467-0747. Learn how to profit from futures trading with automated systems by visiting the company online at http://www.RockwellTrading.com.

About Rockwell Trading: Rockwell Trading’s founders bring 32 years of combined trading experience to the table. Both members of the Chicago Board of Trade, they created Rockwell Trading, Inc. to teach interested investors how to make money with trading systems. By offering them only the best products and services the futures trading industry has to offer, Rockwell Trading strives to provide its clients with complete customer satisfaction.

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Port St. Lucie, FL (PRWEB) September 10, 2008

T & K Futures and Options, Inc. now offers clients access to a multitude of federally registered and licensed Commodity Trading Advisors. Managed futures funds are professionally managed futures accounts run by commodity trading advisors. These managed futures funds are for investors searching for greater market diversification into the various commodity sectors without having to take the time necessary to actively manage the investments on a day to day basis.

“There are many reasons why managed futures funds may be a good investment for risk tolerant investors.” Managed futures trading allows for the opportunity to reduce overall portfolio volatility and risk because they can fluctuate independently of the stock, bond and real estate markets. Managed futures accounts can also deliver the potential for higher overall portfolio returns than a strictly stock and bond portfolio. Professionally managed futures funds have the ability to profit in any economic environment because of the ease of shorting or going long any of the various futures markets that are being traded. Managed futures trading also gives investors the ability to invest in virtually all areas of the global marketplace. Visit http://www.tkfutures.com/managed-futures-trading.htm to view some of the various managed commodity funds that are available to choose from.

There is substantial risk of loss involved in managed futures trading. Many managed futures funds will cease trading if the assets devalue by 50 percent but investors should read carefully through and futures fund’s prospectus before investing any risk capital. Past performance is not indicative of future results and only risk capital should be used when investing in any high risk investment. There is substantial risk of loss in managed futures trading and this type of investment may not be suitable for many investors. Visit http://www.tkfutures.com/risk_disclosure.htm to learn more.

There are many different managed futures funds to choose from. Some focus on only one sector of the commodity markets such as grains or metals while others trade just about every sector. This allows investors to tailor fit a fund into their overall portfolio that specifically meets their needs to have a certain missing commodity sector or asset class as part of their investments. Visit http://www.tkfutures.com/education.htm to learn more about the basics of commodity trading and see the various sectors involved in commodity investing.

Managed futures trading should be considered by investors as a speculative investment and at most should only make up 20% but probably less of the total assets in a portfolio. Managed futures funds are very similar to a managed stock mutual fund but the extreme volatility may be too much for some investors to take. Unlike a stock mutual fund, futures funds often require a minimum investment of ,000 or more to begin trading.

The author of this release is a 15 year veteran of the commodity markets and the president of T & K Futures and Options, Inc. Managed futures funds to some degree may be appropriate for many investors but should be implemented sparingly based on the investor’s risk tolerance.

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Miami, Florida (PRWEB) December 10, 2008

The recent launch of finance related website, Futures Portal, was created for those looking to get educated in commodities and futures trading. People of all experience level are curious as to what is occurring in our market these days and Futures Portal is the perfect place to get your commodity trading news and learn about trading from experienced traders.

Futures Portal is designed for education. It is built to educate even the most experienced of traders. Futures Portal encourages all experience levels to come and learn new tips and tricks from some heavy hitters in the futures trading market. The website has various sections that can be utilized by all visitors. A visitor can come and get specific information directly from the pros of the industry in the “advice from pros” section and learn very valuable information to help them with their trading techniques. With the advent of the internet more and more traders are becoming independent, and sources like Futures Portal are there to help them further.

The owner of Futures Portal had this to say – “The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.”

For those who are looking to take a step back and begin day trading and take advantage of the down market Futures Portal also offers a section on day-trading. If done right this type of online trading can be very lucrative even in a down market. This section of the website offers everything a person needs to know to successfully start day trading and earning some income. There is information that teaches you how to use your judgment and what to look out for along with various other techniques that day trader’s use. By coming by the website and leaving an email address behind Futures Portal will also be sending out a trading tips and market strategies newsletter to stay in touch with all its subscribers and continue to provide the most up to date information on futures trading.

Contributors of Futures Portal are quite impressive. Proudly displayed in the pages of the website a visitor can clearly see who they are receiving their information from. Taking it a step further they can read that person’s bio and credentials as well. Contributors range from 30 year industry veterans to trading software developers. When reading through Futures Portal tips and trading news you can rest assured that the information has been brought to you by someone you can trust. This type of industry requires a tremendous amount of trust for people to keep coming back and utilizing their free information. When dealing with peoples hard earned income it will take them sometime to take the advice from a website and actually apply it to the current situation. When using a website such as this you must realize that the risk of losing substantially always exists. It is important to take very calculated risks. The great deal of leverage that can be obtained through the commodity trading industry can with you and against you so it is important to always have the most up to date information.

For more information on futures trading and trading commodities please visit http://www.futuresportal.com.

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.