Futures Commission Merchant - FCM

AAA

DEFINITION of 'Futures Commission Merchant - FCM'

A merchant involved in the solicitation or acceptance of commodity orders for future delivery of commodities related to the futures contract market.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  2. Customer Type Indicator Codes - ...

    A system that uses four different codes to indicate the types ...
  3. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  4. Broker Association

    A permitted association between exchange members who have shared ...
  5. Futures Industry Association - ...

    An association of futures commission merchants, banks and trading ...
  6. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
Related Articles
  1. Forex: Wading Into The Currency Market
    Forex Education

    Forex: Wading Into The Currency Market

  2. The Series 3 Exam: Creating A Career ...
    Entrepreneurship

    The Series 3 Exam: Creating A Career ...

  3. Futures Fundamentals
    Insurance

    Futures Fundamentals

  4. Curious About Stock Index Futures? Read ...
    Options & Futures

    Curious About Stock Index Futures? Read ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center