Locked-in Range Analysis: Why most traders must lose money in the futures market (Forex)
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Position Limits
CFTC monitors compliance with Commission or exchange speculative limits, which help prevent traders from accumulating large positions that could destabilize a market.
Table 4. Limits of max number of open positions by one account. Source: cmegroup.com
All Month Level / Single Month / Delivery Month will be calculated on a Net positions (the difference between total open long and open short positions in a given asset held by one account).
Reportable Positions
Clearing members, futures commission merchants, and foreign brokers (collectively called reporting firms) file daily reports with the Commission. Those reports show the futures positions of traders that hold positions at or above specific reporting levels set by CFTC regulations. When an individual reportable trader is identified to the Commission, the trader is classified either as
What is Market-Making? (Definition by Tom Leksey)
Market-making (CME Group) is a centralized automated trading system of placing orders from market participants, which has a common pool of Commercial and Non-commercial accounts, which provides liquidity in the futures market, simultaneously opening new positions (buy/sell) and closing already accumulated positions, so that the shares of profit are distributed between each participant in accordance with the established proportions.
According to the latest definition, market maker means all united participants of market-making on CME Group. In contrast to this, multiple (unrelated) market makers can participate in the same stock on the NASDAQ exchange, since the stock does not have an expiration date and counterparties will always appear to close the positions of a single market maker – it is only a matter of time.
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