Wells Fargo provides access to an extensive network of more than 45 futures exchanges worldwide, covering futures for a variety of products, including: our integrated service model supports trade, financing, access to liquidity and market creation of institutional investors, companies and distributors and spans the entire U.S. equity universe. Our ever-growing platform offers a number of actions, products and structured action-related services, with superior execution and customer-focused focus. Much of the activity in the futures market comes from traders whose objective is to take advantage of the change in the value of the contract. The risk of trading in futures, options and swaps can be significant. Futures, options and swaps are risky and not suitable for everyone. Customizable algorithmic execution throughout the US equity universe, which supports trading individual stocks, portfolios and pairs, as well as dollar market skills. We connect to all U.S. stock exchanges and 15 dark pools.
Our office works with clients to develop effective business strategies that can respond in real time to changing market conditions and be tailored to individual needs. Also keep in mind that futures are not covered by the Securities Investor Protection Corporation (SIPC), which helps protect investors from losses resulting from the bankruptcy of their brokerage business. However, if the price of crude oil went the other way, the trader would suffer a loss. It is also possible to lose money in a futures contract, even if the underlying spot price goes in a favourable direction. This is due to other factors in the futures market. A wheat producer can sell a futures contract on its wheat crop several months before harvest to reduce the risk of lower wheat prices. The performance obligation can only represent a fraction of the total value of the contract – often between 3% and 12%. This makes futures a highly heated commercial vehicle.
As a result, a trader may have greater flexibility and capital efficiency, but this can also potentially lead to greater losses. Also, because of this leverage, a trader could lose all or more than his first deposit. Before opening an account, it is important to consider several factors in determining whether futures are right for you: for example, a futures trader could buy a December crude oil contract (or another month; there are usually contracts offered for each month for most commodities, especially in the near future) with the hope that the price of crude oil will increase and increase the value of the contract. If that happens, the trader could then sell a December crude oil contract to close the position. This relieves the trader of the obligation to take delivery of the oil and the trader benefits from a profit (minus commissions and other fees) from the transactions. Wells Fargo offers its customers a wide range of electronic front-end execution systems. Wells Fargo offers a wide range of algorithmic business functions from industry leaders.