Other Investing Opportunities

Futures and Options

What are some basic principles that the CFTC recommends I follow when I am beginning to invest in commodities and futures?

The CFTC recommends that you follow a few basic principles before you begin trading in commodities and futures: the money you choose to invest is considered “risk capital,” meaning you should be able to lose all of it without a detrimental effect on your total portfolio; you should investigate all the risk disclosure documents of the firm, and you should decide whether you will depend upon the advice of a broker or make your own decisions on trading activity. Additionally, the CFTC recommends you fully understand any financial obligations inherent with your trades in commodity futures and option contracts, that you fully understand sources of fraud and abuse exist within the firms that you may encounter (and that they may attempt to steal money from unsuspecting investors and traders), and that you should contact the CFTC if you have any problem or additional questions.


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