CUSTOMER PROTECTION

Important to Know Before Conducting Futures Transactions

For investors, commodities futures trading activities, hereinafter referred to futures trading, can be quite attractive investment option, because of the leverage factor. Leverage is a situation, where the placement of a small number of funds that can be obtained profits or losses, as a result of commodity price changes that occurred, which amount is calculated from the value of funds placed.

Futures trading activity is often referred to as the risky, complex, and highly volatile, so only suitable for people who have high business skills. Therefore, before engaging in this activity, you must first:
• Consider your experience in the financial field, goals, your financial resources, and how much readiness to suffer losses calculated from your first payment, without disturbing your economy;
• Understand and understand futures contracts, as well as any liability that must be met when you make the trade agreement;
• Understand and understand the risks it faces the possibility of trade and various other aspects, as contained in Document of The Risk (Risk Disclosure Statement), delivered to your Broker;
• Knowing who can / should be contacted if you encounter a problem or need to ask questions.


Knowing your goals and financial resources

Anyone who trades futures and why?

Most users or participants in futures markets is the commercial and institutional users of the commodities they traded. For example, a company or individuals who own or control a number of assets such as coffee, corn, soy or portfolio of shares, which wants increased value of their assets or minimize the losses that they may experience.

They can use the futures market by taking a position opposite to their real position. In this way the risk, losses due to the possibility of changes in commodity price / assets, can be minimized. This is called hedging.

Other participants are speculators, who expect to benefit from the changes in futures prices. Someone who bought futures contracts or call options, or sell the Put Option, to profit from rising prices. While those who sell futures contracts, or the Call Option or the Put Option purchased to profit from falling prices.

A speculator can suffer a big loss, because he has not been the subject of commodity futures contracts it, has no index component stocks, or other products. Thus, the losses that they may experience in connection with its futures trading, can not be "covered" (compensated) by the benefits of physical marketplace.

Individuals can also participate in activities in the futures market. Someone who has a business / commodity business, or who have a diverse investment portfolio and in large numbers, can use futures or options contracts. They act as Hedger. This individual investors must have sufficient financial resources, to "ready" to suffer huge losses that may be experienced in the trading of futures contracts or options.

Can trade in futures or options meet my investment objectives?

Futures trading is complex, risky, and not appropriate / suitable for everyone. Firstly you must define or know the size of potential losses you can suffer and honestly assess yourself if you're "ready" for the losses suffered losses related to financial resources and your investment goals. Communicate this to your Broker. If you've concluded that you have sufficient financial resources and strong consideration to investing in futures trading, you should also assess the amount of funds that you plan to invest based on broker's advice at your own compared to the calculations. Next you need to assess and compare the methods of calculation before you choose one of them approached the plan according to your results / goals. You should also set limits on your investment of time and magnitude of loss that you are ready natural. Like other financial markets, futures markets are also cycle (cyclical). The important thing to remember is that because of the nature of the futures market is the leverage factor, the size of unexpected losses can exceed your initial deposit amount. **


Customers must be careful in offering that promises to excess profits. But, more importantly, first understand the meaning of futures exchanges.

Although the statement that promises big profits could be right, but it should be noted that the promise of "return" with a great small risk is usually a misleading statement. For that, watch out for people who do not deliver "notification of the risk" (disclousure statement). Before opening an account. You have to get ahead and read it carefully.

Beware of someone who seems to urge you to borrow money to invest. Beware of the security gains or "crap" about the performance (performance) of the past. Do not be quick to believe in guaranteed benefits that he has been based on the calculation of seasonal cycles, market forecasts, or any news / any other current information.

In every business there is always a fraud, not the exception in the futures trading industry. Maybe you also need to check beforehand about the status of companies or individuals related to you, before you open an account.

Understanding Futures Contract

The most fundamental is the first you know, understanding of the futures contract. Futures contract is a legally binding agreement between two parties, to buy or sell commodity futures contracts to be subject, in quantity, quality, type and specific places that have been determined.

Transactions done at the Futures Exchange which has obtained a license from BAPPEBTI. Buyers and sellers of futures contracts agreed to certain price for the commodity for future delivery. Although the delivery of physical commodities can occur as a manifestation of the fulfillment of the contract, but the majority of futures contracts are generally concluded with how "off-set" before the contract maturity.

"Offset" is to conduct the transaction (buy / sell) for the same futures contracts, as well as in total and for the same delivery month, which is contrary to the position of "open" previously owned Futures Contract (Contract sales / purchases).

Conducting Futures Trading

Futures contracts can only be traded on an exchange, and traded by parties who have a permit / business from BAPPEBTI, and implemented in accordance with the rules and regulations applicable stock exchange. As individuals, you can not do directly futures transactions on the stock, but must go through with the status of Members of the Stock Broker. In addition to the Broker, you can also invest in futures trading in Futures Fund Center, where you become a participant. Sentra Sentra Funds managed by Fund Manager who is responsible for managing investment portfolios Sentra Dana.

To become a participant Sentra Fund, you must purchase certificates issued by Manager Investment Funds Centers. Futures transactions conducted through the Fund Manager Broker Center have been selected, made on behalf of the Dana Center.

For each purchase / sale of futures contracts, you are obliged to deposit some funds (money) called the margin (initial margin or initial margin). Compared with the true value of futures contracts that you buy / sell, the relatively small size of this margin. That is what is the attraction of trading futures contracts (leverage). With the existence of leverage, although a small price changes that occurred, but in a short time can produce large gains or losses.

Every day your broker will do the calculation on your account, based on the settlement price (settlement price) towards the open position of your futures. If your account value is reduced until it reaches the limit the amount of margin that must be maintained (maintenance margin, approximately 75% of the amount of initial margin), a broker will ask you to buy deposit a margin again (margin call), making the total return reached the limit of the original margin.

If you fail to request a margin call within the time specified, in order to reduce further losses on your position is still "open", the broker you can "close" your open position (the position was liquidated). If your positions liquidated in a state of loss, that loss remains your responsibility.