What is a Futures Broker?

A futures broker refers to an intermediary that specializes in the trading of commodity futures, financial futures, options and other varieties, and participates in futures trading or buying and selling futures on behalf of clients (including market representatives and other clients engaged in customer development, account opening, execution commissioning, settlement and other businesses ), Who analyzes and makes judgments in futures trading and makes money through price fluctuations, but cannot directly invest on behalf of customers.

Futures broker

Right!

And because foreign futures brokers have high credibility, they can directly operate as customer agents, so their worth is quite high.

Market development and business development, attracting customers and attracting funds for the company;

To handle the various procedures of trading futures contracts for clients;

Introduce the client to the details of the futures contract, the trading rules of the exchange, and relevant laws and regulations;

Report market information to the client in time, submit market research reports, act as the client's trading advisor, and provide the client with favorable trading opportunities;

Protect the interests of the client, and conduct futures contract trading according to the client's instructions.

Education and training: Bachelor degree or above in marketing or economics related major, proficiency in futures business knowledge, and qualification certificate in futures business.

Work experience: Have unique market analysis ability and development ability for the futures market; have more than one year working experience in futures or securities; have good interpersonal relationships, it is best to have certain client resources; have the ability to respond quickly and accurately And good communication skills; shrewd, honest, strong work responsibility.

Futures brokers are a young, promising group with knowledge, strong business capabilities. Since the world financial crisis and economic crisis triggered by the US subprime mortgage crisis in 2008, the economic conditions of various countries have been less optimistic, and China is also in a period of economic structural transformation. The overall economic situation is not very good, and various industries have been affected to varying degrees. influences. Futures brokers are of course no exception. There are few customers, and the currency market is constantly tightening. The treatment is not very good. The composition of the broker's income (customer transaction fee commission) includes: basic commissions, bonuses, and welfare points (for personal benefits and team activity expenses). ^[1]

The "Futures Broker Contract" clearly stipulates the rights and obligations of both parties in the contract. Because the contract has legal effects and is protected by law, both parties must fulfill their rights and obligations in accordance with the contract.

Contracts usually include the following:

1. Entrustment; 2. Margin; 3. Forced liquidation; 4. Notice items; 5. Designated matters; 6. Orders issued; 7. Reports and confirmations; 8. Spot month liquidation and physical delivery; 9. Margin account Management; X. Information, training and consulting; XII. Expenses; XII. Exemption clauses; XIII. Effectiveness and modification of contracts; XIV. Account settlement; XV. Dispute resolution; XVI. Other matters.

In these terms, investors should pay special attention to three to seven. The third is related to the risk measurement method and the corresponding measures that the futures brokerage company can take; the fourth is how the two parties agree on how the futures brokerage company has fulfilled its notification obligation and how to determine that the futures brokerage company has fulfilled its notification obligation; the designated matters in the five are Refers to "designated order issuer", "designated fund transferor" and "designated contact information". Note that if the "order issuer" and "fund transferee" are not the investors themselves, it means that they have authorized others to invest The person must be responsible for the actions of the authorized person; the contents of the Sixth Form are developed around the order issuing method. If the trading investor chooses an electronic trading method, a corresponding supplementary agreement must be signed; the contents of the seventh form are settlement reports An agreement on how to resolve a dispute or issue.