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Trading - the Futures Option Instrument:
Specifically the futures option refers to an option on a futures contract.
This type of option applies to both commodity and financial instruments. When the futures option contract is exercised, the futures contract is settled and this normally occurs
in cash. This site deals with the futures option instrument and with futures and options in the broader sense.
Inherent Risk of Futures and Options Trading:
An important factor to remember in dealing in futures and options is that they can be extremely risky and volatile. Even with the most sophisticated, state-of-the-art trading systems, you the trader however astute bear this risk. Never rely on a single source to base your investment decisions on.
Your investments, after all, may thrive or vanish.
The investor should always perform complete and thorough research and analysis from multiple sources and always consult
a professional before making any investment decisions.
| See our sections on puts & calls (all 3) and option trade symbols and systems, futures and options contracts. The American and European style options are recapped. Main commodities exchanges listed. |
Regulatory Agencies
Commoditiy Futures Trading Commission - regulatory agency of futures and options -- helps prevent futures and options fraud and abuse and promotes a healthier trading environment. (ctfc.gov)
National Futures Association (NFA) -
Offers a Background Affiliation Status Information Center (BASIC), where investors can check a firms registration status. NFA also houses a learning center for trading information, certain, dispute resolutions and a place to file complaints. (nfa.futures.org)
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