Electronic futures trading brokers canada
Through the integration of highly experienced brokers, coupled with leading technology, Macquarie Futures delivers its clients excellence in pre-trade, point of trade and post trade execution in listed derivatives across global markets. Whether executing trades electronically via a Direct Market Access DMA platform, or via phone orders, our experienced traders offer support for your business.
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In December , the ICEFC moved to electronic or computer futures trading, eliminating the physical process of operating a trading floor in Winnipeg.
Functions of the Canola Futures Contract The canola futures contract is the world benchmark for canola trading. The canola futures contract is often used as a price discovery mechanism for canola, as well as for some related crops, such as specialty rapeseed.
Producers and buyers monitor canola futures prices as a reference for cash canola prices. Cash contracts, such as basis or deferred delivery contracts offered by canola buyers, reference a certain canola futures price. In addition to providing a reference to cash contracts, the canola futures contracts are used as a price risk management tool to protect from price fluctuations.
Canola crushers, exporters and foreign buyers use these contracts regularly. There are some market conditions when being able to directly use the futures market is a better alternative than cash selling or contracting.
For example, when the basis level i. The sell futures position would protect against downside risk on the futures price while the producer waits for a stronger basis level before completing a cash sale. When that cash sale is made, the futures hedge could then be removed, again by using a broker to buy the futures contract back. Most, if not all, deliveries against futures contract positions occur between licensed grain companies with grain delivery facilities. Currently, in order for a producer to deliver physical canola against a short futures position, permission must be obtained from a licensed facility to accept the canola.
For this permission, the facility may charge a fee that could offset any advantage that the futures delivery process may have offered.
Broker Responsibilities People who place buy and sell orders for canola users and producers are registered futures commission merchants RFCM , although most people call them brokers.
Although the commodity exchange sets minimum margins, the margin requirements can vary from firm to firm, so producers need to discuss this aspect with their broker. See Choosing a Commodity Broker. Margins T he initial margin is the amount required in an account deposited with the RFCM to open a futures position. It is important to understand that margin is just security money to hold a position, and that upon closing a position, the margin money is returned, plus or minus any funds that result from the profit or loss on the trade.
The initial margin varies from time to time depending on price volatility. For example, in a volatile market, margin requirements could be doubled overnight to provide more security from adverse price movement.
Also, note that a brokerage firm may set its margin requirements at a higher level than the ICEFC minimums. If a producer is short a futures contract i. It consisted of an IBM computer that would pull data from a Nasdaq terminal connected to it and carry out trades on a fully automated basis. The machine, for which Peterffy wrote the software, worked faster than a trader could.
Peterffy and his team designed a system with a camera to read the terminal, a computer to decode the visual data, and mechanical fingers to type in the trade orders, which was then accepted by the Nasdaq.
In , Timber Hill France S. By , Timber Hill had employees. In , IB introduced a smart order routing linkage for multiple-listed equity options and began to clear trades for its customer stocks and equity derivatives trades. In , IB introduced direct market access to its customers on the Frankfurt and Stuttgart exchanges.
In the same year, IB upgraded its account management system and Trader Workstation, adding real-time charts, scanners, fundamental analytics, and tools BookTrader and OptionTrader to the platform.
In , the IB Options Intelligence Report was launched to report on unusual concentrations of trading interests and changing levels of uncertainty in the option markets. In , Interactive Brokers started offering penny-priced options. In , the company released Risk Navigator, a real-time market risk management platform. Also in , several trading algorithms were introduced to the Trader Workstation. Among these is the Accumulate-Distribute Algo, which allows traders to divide large orders into small non-uniform increments and release them at random intervals over time to achieve better prices for large volume orders.
Interactive Brokers also became in the largest online U. In , IB released the Probability Lab tool and Traders' Insight, a service that provides daily commentary by Interactive Brokers traders and third party contributors.
An IB FYI also can act to automatically suspend a customer's orders before the announcement of major economic events that influence the market. Interactive Brokers is the largest electronic brokerage firm in the US by number of daily average revenue trades,  and is the leading forex broker.
Peterffy has described the company as similar to Charles Schwab Corporation or TD Ameritrade , however specializing in providing brokerage services to larger customers and charging low transaction costs. He also described the company's focus on building technology over having high sales, with technology often used to automate systems in order to service customers at a low cost. Interactive Brokers Group has nine directors, including Thomas Peterffy, Chairman of the Board of Directors, who as the largest shareholder is able to elect board members.
Among the company's directors are Lawrence E. Traders and programmers work in units with several monitors and more overhead, while several network engineers staff an area round the clock, six days a week. Petersburg , Tallinn , Mumbai , and Tokyo. More than half of the company's customers reside outside the United States, in approximately countries.
The first chapter of Christopher Steiner's book Automate This: Stock Market also detail Peterffy and his company. From Wikipedia, the free encyclopedia. Companies portal Business and economics portal Software portal Connecticut portal. Retrieved March 27, Institutional Investor November New York, New York: