In the futures market, futures companies are often mentioned together with futures exchanges, because futures companies play an important role in the futures market, are the intermediary of the futures market, and are the bridge between OTC traders and futures exchanges. So, what is the futures company in the middle?

What does a futures company do?

1 Accept customer instructions and act as an agent to buy and sell futures contracts.

2. Go through the settlement and delivery procedures.

3. Manage customers.

4. Control the transaction risk of customers.

Provide trading market information to customers.

Provide consulting services for futures trading.

7 act as a client transaction consultant.

Provide asset management services to customers.

Futures companies rely on markets derived from commodity, capital and money markets to provide risk management services.

10 futures companies can promote the efficient and orderly operation of the futures market and urge traders to perform their duties. The futures market implements a margin system, and futures companies implement a debt-free settlement system on the same day. Once the customer fails to make up the shortage of margin within the specified time due to price fluctuation, the risk of customer margin becomes the main risk of futures companies. At this time, the futures company will use its own funds to make up for the shortage of customers, promote the performance of contracts, and ensure the efficient and orderly operation of the futures market.

1 1 The futures company will try its best to maximize the interests of customers and create the greatest interests for the shareholders of the company.

To sum up, the role of futures companies is to trade for customers and provide corresponding supporting services to promote the performance of contracts to ensure the efficient operation of the futures market.