FAQs — Frequently Asked Questions

  • What is a futures contract?

    Futures Contracts and Options on Futures Contracts create the obligation or grant the right to either "make or take delivery" of a specific amount of a specific commodity or financial instrument at a specific price on a specific future date. Generally, these binding agreements commit the holder to either buy or sell "wholesale quantities" of the underlying commodity or financial instrument and therefore have a face value in the thousands, if not, hundreds of thousands of dollars. Futures contracts and Options on Futures contracts are traded on organized exchanges around the world.

  • What are performance bonds?

    To insure the performance (at expiration) by the parties, the Exchanges require the posting of a Performance Bond or Margin Deposit from both parties, with daily settlement of the changes in a particular contract’s Mark-To-Market Value. Generally, this Margin Deposit is less than 5% of the contract’s face value and, therefore, provides a significant level of leverage. This leverage can either work in an investors favor or to his detriment, and can result in losses far in excess of the initial capital deposited as well as gains of similar magnitude.

  • How are futures and options on futures traded?

    Trading in futures and options on futures occur either in an open out-cry auction or via electronic trade-matching platforms.

  • What hours do futures markets trade?

    Futures markets trade virtually 24 hours a day, 5-1/2 days a week.

  • Who regulates the U.S. Futures Markets?

    The U.S. Futures Markets are directly regulated by the U.S. Commodity Futures Trading Commission. Additionally, there are various self-regulatory associations including the National Futures Association (NFA) and the various exchanges.

  • What is a Futures Commission Merchant (FCM)?

    A FCM is a registered broker or brokerage firm who has been authorized under the Commodity Exchange Act to directly accept customer funds to support customer futures trades.

  • What is an Introducing Broker (IB)?

    An IB is a registered broker or brokerage firm who, acting as the customer's representative, refers or introduces a customer's futures account to a registered FCM.

  • Who is IBS Futures?

    IBS Futures is the trade name under which Integrated Brokerage Services, LLC conducts its futures brokerage and clearing operations. Integrated Brokerage Services, LLC is a registered Futures Commission Merchant (FCM) as well as a member of the National Futures Association (NFA).

  • What is your minimum account size?

    All Futures Accounts (including all accounts with short options positions) — $5,000.   Options Accounts (long options positions only) — $2500. Managed / Pooled Accounts and Hedge Fund Investments — subject to the minimums of the particular Manager.

  • What types of orders can I place?

    Many types of orders are accepted including Market, Limit, Stop, GTC (Good 'till Cancelled), and OCO (Order Cancels Order).

  • How can I open an account?

    Call 1-800/691-2787.