Futures Commission Merchant - FCM

What is a 'Futures Commission Merchant - FCM'

A futures commission merchant (FCM) is a merchant involved in the solicitation or acceptance of commodity orders for future delivery of commodities related to the futures contract market.

BREAKING DOWN 'Futures Commission Merchant - FCM'

A futures commission merchant is able to handle futures contract orders as well as extend credit to customers wishing to enter into such positions. These include many of the brokerages that investors in the futures markets deal with.

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RELATED FAQS
  1. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Answer >>
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    Learn what items futures may be purchased for, what a futures contract is and discover how the futures markets have greatly ... Read Answer >>
  3. How do I learn technical skills for trading commodities?

    Learn what resources are available to learn about trading commodities, and understand some of the differences between stocks ... Read Answer >>
  4. How can I calculate the notional value of a futures contract?

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  5. How are commodity spot prices different than futures prices?

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