Maximizing Capital Efficiency Using Leverage

Futures contracts, as you may know, are traded through the use of performance bonds, often referred to as margin. The margin required to take a position using a futures contract in many cases only represents a small fraction of the total value of the contract, making futures a highly leveraged trading vehicle. In other words, futures contracts represent a large contract value that can be controlled with a relatively small amount of capital. This aspect of futures trading results in greater profits and losses than a comparative non-leveraged investment utilizing the same amount of capital, providing a trader with better capital efficiency.

For …Read More

Are clients of FOX able to use IRA funds to trade futures?

This is a question that we hear often, and the simple answer to it is “Yes” – IRA funds can be used to trade futures.  However, although there are some additional steps necessary to establish an IRA account to trade futures, the good news is that the process is not a difficult one.  We have outlined that very process here in an effort to help investors decide if this is a viable option for them.

1 – Open a trading account with a Futures Commission Merchant (FCM)

Sounds easy, right?  That’s because it is!  This step is no different than if …Read More