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futures options brokersFutures options brokers are companies that offer brokerage services for options on futures contracts, traded on Chicago Mercantile Exchange (CME) and elsewhere. As stated in the product description for Options on Futures Contracts at the CME, an option on a futures contract conveys the right, not the obligation, to assume a position in the underlying futures market at a specific price any time before the option expires. There are two different types of options: call options and put options. For the CME, you can find options on futures contracts in the commodities, foreign exchange (FX), equity index and interest rate markets. Available Futures Options BrokersThe best way to locate brokers with specific market expertise (such as the market for options of futures), is to look at the resources on specific exchanges. For example, CME offers a convenient locator tool to find different types of brokers. The brokers are listed by location, and you can filter the results by whether you need a discount or full service brokerage, for example. Not all brokerages have the ability to handle options on futures contracts, but most of the bigger brokerages have specific service on that market area. Before participating on the options on futures markets, its best take as much education on the market and its characteristics as possible before making any investments. A good book on the option markets, to start your research, includes the book "Options, Futures and Other Derivatives" by John C. Hull. Lots of information is also available from the exchanges that trade options on futures contracts, such as the CME. |