Commodities
Who regulates the business of commodities futures and options?
The commodities futures and options trading is regulated by their own SRO's or self regulatory organizations. Those organizations do almost the same thing as the security exchange commission and NASD. The difference is that they have their own commissions themselves that run, manage and handle that specific trading platform.
What disclosures must be provided to me before opening a futures account?
An IPO is an initial public offering. This is when a company that has been operating privately wants to come out to the public to generate funds to either increase their exposure, or to allow the public to participate in the business themselves so that they themselves have ownerhip, because when a company becomes public then a person who buys that stock and those shares has ownership in that company themselves.
What recourse do I have if I have a dispute with my commodities broker?
If you have a dispute with your commodities broker then what you truly need to do is go back to your broker and discuss the dispute. If you feel that you haven't received satisfaction, you then need to go to your broker's manager, and then potentially you would be looking at going into arbitration.
What is a 'margin call'?
A margin call is when you get an actual call from your broker stating that the debt in your account (that means your margin amount, or your loan amount) has grown greater than the brokerage house is allowed to have through their regulators versus securities that you hold. And then you'll be asked, from a margin call, either to add more dollars or to sell some of the positions that you have.
What if I am unable to pay a 'margin call'?
If you're unable to pay a margin call, then you have an option to add more dollars to the account, or to sell positions that you have in the account in order to reduce the debt.
