Futures 101 - Chapter 13

Chapter 13: Establishing an Account

At the time you apply to establish a futures trading account, you can expect to be asked for certain information beyond simply your name, address and phone number. The re-quested information will generally include (but not necessarily be limited to) your in-come, net worth, what previous investment or futures trading experience you have had, and any other information needed in order to ad-vise you of the risks involved in trading fu-tures contracts. At a minimum, the person or firm who will handle your account is required to provide you with risk disclosure documents or statements specified by the CFTC and ob-tain written acknowledgment that you have received and understood them.

Opening a futures account is a serious deci-sion— no less so than making any major financial investment—and should obviously be approached as such. Just as you wouldn’t con-sider buying a car or a house without carefully reading and understanding the terms of the contract, neither should you establish a trad-ing account without first reading and under-standing the Account Agreement and all other documents supplied by your broker. It is in your interest and the firm’s interest that you clearly know your rights