Futures brokers and Exchanges question

A

arman555

Hello,

Can anyone please clear this once and for all how does futures broker relate to the futures exchange.

As i understand, Broker allow access to the exchange. But then why the restrictions on the products? I should be able to trade to each and everything listed on the exchange. No?
Ex. I would like to trade BK listed on CME. No broker seems to have that.
Thank you
 
As far as I know, it is not mandatory for a broker to offer all products from a particular exchange.
and it is not mandatory for a broker ( US based or non US based) to offer products from CME.

anyway there are thousands of financial products which has virtually zero volume.
 
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Brokers absolutely can and should restrict what you can trade from an exchange. A retail broker may want to offer CME's index futures, but not deal with commodities, because they don't want idiot customers to suddenly find themselves having bought 8 semi truck's worth of grain.
 
zoned_post_meridiem said:
Brokers absolutely can and should restrict what you can trade from an exchange. A retail broker may want to offer CME's index futures, but not deal with commodities, because they don't want idiot customers to suddenly find themselves having bought 8 semi truck's worth of grain.
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So what difference does it actually make? when the margin falls they can just close the position? Besides CL is traded on almost on every broker the same thing could happen with that. That logic didnt make any sense.
 
arman555 said:
So what difference does it actually make? when the margin falls they can just close the position? Besides CL is traded on almost on every broker the same thing could happen with that. That logic didnt make any sense.
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There is no logic when CL trades negative before the CME can fully implement a negative strike support structure.
 
Overnight said:
There is no logic when CL trades negative before the CME can fully implement a negative strike support structure.
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Ok that logic is even worst. That just happened first time this month. I am sure those brokers were not still allowing all the products in Feb.
 
FCMs make a determination based on account size, liqudity of the contract, and the actual fluctuations of those instruments.
 
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