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FAQ's ::
- Capital Requirements
MCFPL is a fully a commodityFutures broker, which means that we meet the most demanding financial requirements and are audited continuously. In fact, like every licensed exchanges that holds customer funds, we're required to tally financial reports each and every morning with sub-brokers.
- Segregated Accounts
Every futures brokerage company is required to hold customer trading funds used to margin or guarantee exchange-traded futures contracts in a "customer segregated funds account," totally separate from their own corporate bank accounts. Such funds are considered sacred and can at no time be commingled with the firm's funds or the funds of the firm's principals. This is one of the industry's cornerstone protections.
- Daily account Settlement
As futures prices move up and down, gains and losses are credited or charged to every customer's account each day following the close of trading. This mark-to-the-market system doesn't allow losses to accumulate, and it stands in direct contrast to many other financial markets, where market participants regularly assume credit exposure to each other.
- Margin Requirements
Each futures exchange sets minimum margin requirements for all its products, and adjustments are periodically made to account for factors like rising or declining volatility. Futures traders are required to maintain the prescribed margin levels in their accounts to cover losses they might incur. The availability of such funds is what makes daily cash settlements possible under all market conditions.
- Exchange Clearing Houses
In every matched transaction executed through the facilities of a regulated futures exchange, the clearing organization of the exchange is substituted as the buyer to every seller and the seller to every buyer. In other words, the exchange's clearing organization becomes, in effect, the counterparty to each of your trades. As a trader, you needn't worry about the creditworthiness of the party on the other side of your trades.
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