Options and Futures

Futures Commission Merchant

An essential player in the world of futures trading is the Futures Commission Merchant (FCM). They act as intermediaries between buyers and sellers of futures contracts, operating under the regulations set by a futures exchange. As part of their role, they also handle the margin requirements for trades made on behalf of their clients. This crucial function makes them a key player in the futures market and requires them to be licensed by the Commodity Futures Trading Commission (CFTC).

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