Strong enforcement authority. NFA has the authority to take disciplinary actions against any firm or individual that violates its rules. These actions range from Warning Letters for minor rule infractions to formal Complaints in cases where rule violations warrant prosecution. NFA often collaborates with the CFTC, the FBI and other law enforcement agencies to ensure full, comprehensive prosecutions. Trade practice and market surveillance. NFA provides a variety of regulatory services and programs to electronic trading platforms to ensure the fair treatment of customers and to maintain orderly markets.

Since , NFA has worked closely with the CFTC and other self-regulatory organizations SROs to adopt a number of initiatives to further safeguard customer funds. NFA, in conjunction with CME Group and other SROs, developed and implemented a system in that requires all depositories holding customer segregated funds on behalf of a futures commission merchant FCM to directly report balances daily to SROs.

The SROs then perform an automated comparison to the daily reports filed by the FCMs to identify any suspicious discrepancies. In addition, each FCM now is required to provide regulators with immediate notification if it draws down its excess segregated funds funds deposited by the firm into customer segregated accounts to guard against customer defaults by 25 percent in any given day. Such withdrawals must be approved by the CEO, CFO or a financial principal of the firm, and the principal must certify that the firm remains in compliance with segregation requirements.

All FCMs also must regularly file certain basic financial information about the firm with NFA. NFA began an arbitration program in , providing a convenient, inexpensive and prompt method for investors to resolve futures-related disputes.

Since that time, NFA arbitration has become the primary venue for dispute resolution for retail futures and forex customers. In October , NFA became the first regulatory organization in the financial services industry to accept arbitration claims online.

Since then, NFA has enhanced its website so that customers are now able to file their initial arbitration or mediation claims online. Within minutes, NFA sends a reply stating that the claim has been received and, as the case progresses, claimants and respondents can check the status of the case online.

Mediation is a settlement process where the parties work together with a mediator to find a mutually agreeable solution. Settling a dispute through mediation can save the parties time and money.

Investor protection begins with investor education. From its inception, NFA has provided investors with the tools they need to make informed financial decisions. NFA has developed several publications that discuss a variety of finance-related topics.

BASIC contains registration information concerning all current and former CFTC registrants. BASIC also provides information concerning disciplinary actions taken by NFA, the CFTC and all U. futures exchanges. NFA also publishes a quarterly investor newsletter, distributed electronically to more than 4, subscribers, and periodically attends investor-oriented tradeshows.

The association was created in the form on non-profit self-regulatory organization and by the moment it controls two large industries: futures trading and Forex. Each company - a professional participant of financial market - must be registered in CFTC and be a member of the National Futures Association.

By the moment, NFA numbers more than of associated members. E-minis are ideal for new traders because of their increased liquidity and accessibility due to the lower margin requirements. The contracts trade 23 hours a day, Monday to Friday, around the world. Forex futures are used extensively for both hedging and speculating activity.

Let's briefly examine an example of using FX futures to mitigate currency risk. As with the equities market, the types of trading method are dependent upon the unique preferences of the individual when it comes to both techniques and time frames. Day traders generally never hold positions overnight and can be in and out of a trade within a matter of minutes seeking to jump on an intraday swing.

is centered around price and volume action with a heavy emphasis on technical analysis as opposed to fundamental factors. A forex futures day trader primarily employs the main technical indicators prevalent in the spot markets, such as Fibonacci patterns , Bollinger Bands , MACD , oscillators , moving averages , trend lines chart patterns, and support and resistance areas.

Many, if not all the aspects of technical analysis for equities can be interchangeable with the futures market, and thus, trading between the two asset classes can be an easy transition for day traders. Swing traders are traders who hold positions overnight, for up to a month in length.

They generally employ technical analysis spanning a longer time frame hourly to daily charts , as well as short-term macroeconomic factors. Finally, there are the position traders who hold onto a position for multiple weeks to multiple years. For these individuals, technical analysis may take a back seat to macroeconomic factors.

Position traders are not concerned with the day-to-day fluctuations in the contract prices but are interested in the picture as a whole. As such, they may employ wider stop-losses and differing risk management principles than the swing or day trader.

Note, however, these are generalized definitions and the differentiating characteristics of traders are not black and white. At times, day traders may employ fundamental analysis, such as when Federal Open Market Committee data is released. By the same token, position traders may employ technical analysis tools to set up entries, exits, and trailing stop losses. Furthermore, the time-frames utilized by traders are also quite subjective, and a day trader may hold a position overnight, while a swing trader may hold a position for many months at a time.

Much like in the equities markets, the type of trading style is entirely subjective and varies from individual to individual. Similar to the equities market, traders of FX futures employ both technical and fundamental analysis. Technical analysis by nature examines price and volume data, and subsequently, similar methodologies are prevalent across both the equities and the futures markets. However, the biggest analytical contrast between the FX trader and say, a stock trader, will be in the way they employ fundamental analysis.

Fundamental analysis in the stock market may emphasize scrutinizing the accounting statements of a firm, management discussion and analysis, efficiency analysis, ratio analysis, and industry analysis. Depending upon the analyst, broader macroeconomic principles may take a backseat to company-specific characteristics.

However, traders of FX futures and FX in general , must be absolutely familiar with macroeconomic principles and forecasting techniques. The trader must understand the principal determinants of business cycles within a country, and be able to analyze economic indicators , including though not limited to , yield curves , GDP , CPI , housing, employment, and consumer confidence data.

For example, both the Canadian and Australian dollar are susceptible to movements in the prices of commodities- namely those associated with energy. If a trader feels that oil will experience further declines, they may short CAD futures, or take on a long bet in the hopes of an oil rebound.

Again, fundamental analysis for FX futures always concerns itself with the broader view of the world and the general relation of the markets. Trading forex futures, much like any speculative activity, is risky in nature. Transparency, liquidity, and lower risk of default make forex futures attractive trading vessels. But the trader must respect the power of the margin in amplifying losses as well as gains , conduct necessary due diligence, and have an adequate risk management plan prior to placing their first trade.

CME Group. Futures and Commodities Trading. Day Trading.

National Futures Association NFA was set in as self-regulatory body intended to protect rights of participants of the USA financial market. The association was created in the form on non-profit self-regulatory organization and by the moment it controls two large industries: futures trading and Forex.

Each company - a professional participant of financial market - must be registered in CFTC and be a member of the National Futures Association. By the moment, NFA numbers more than of associated members. Within the framework of regulations, NFA primarily implements the function of control over proper compliance of organization members with the Federal laws as well as standards set CFTC.

To cope with fraud and various abuse against stock and Forex brokers , NFA takes a number of measures first of all including supervision over implementation of clear-cut rules regarding advertising, public notification about risk, satisfying requirements to capital of company and competence of employees.

Crucial role of NFA is to settle disputes and conflicts between trader and broker. Arbitrage management program started its activity in and represents an efficient method of dealing with disputes between traders, investors and brokers. Association became the first world regulating body accepting arbitrage claims via the Internet. Apart from that, common official hearings are conducted providing parties with the opportunity to turn to barrister's services.

You need forex when traveling to another country or when companies in different countries do business. The differences between forex and futures are not huge, but there are some points worth considering. We do not operate any markets. are take into consideration. Forex Futures Trading Requires Margins All the Forex futures clearinghouse needs a certain amount deposit by the traders as security, which is known as margin.

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