Discount Futures Brokers

Discount futures brokers execute buy and sell orders they receive from clients. Another word for futures is commodities which are traded on the stock market. According to instructions from the client, the broker will buy a commodity set for a date in the future, however the price will be the price of that day. The idea is that the commodity will have a higher price on the date chosen for the future. Then when the commodity is sold on that specific date, if speculations are correct, the client makes money. Futures and options are not the same thing but may sometimes be confused with one another. With an option, the client has the ability but not the obligation to take action before the expiration date.

Buyers of futures must buy the commodity they ordered their broker to purchase. This position can be liquidated before the date only by selling the commodity to another investor through a broker. The discount futures brokers do not need a seat on the floor to have the ability of trading, they can actually trade via a broker who does have a seat. The broker in the pit follows the instructions they receive from the discount futures brokers regarding commodities trading.

Discount futures brokers do not usually offer any other services for clients without charging extra. In addition, they do not offer investment advice or any kind of research. Their job is simply to buy or sell. If you want a broker who can advise you and help you when it comes to researching and forecasting then look for a full service broker. This type of broker can help you choose what and when to buy and sell, while keeping you well educated on up to the minute market information. The type of broker you choose depends on your level of knowledge and your personal preferences.

Commodities are things that come from the earth, in basic terms. There are all kinds that discount futures brokers can trade for you. They include things like gold, silver, zinc, oranges, coffee, wheat, coffee, sugar, oranges, cattle, pigs, lumber and so much more. As the name suggests, discount futures brokers cost less than full service brokers but as the saying goes, you get what you pay for. What they do is strictly limited so you will need to have a firm grasp on the business of commodities trading.

The career of discount futures brokers can be fast paced and often stressful. Any individual who wants to become a discount futures broker must have a degree in a related field like economics or finance and be registered with the National Futures Association after successfully completing licensing exams. Brokers should have good interpersonal skills, research skills and even sales skills.

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