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Futures Trading

Finding your very own unique commodity trading edge is a worthwhile goal. Perhaps surprisingly, until only about forty years ago, trading futures markets consisted of only a few commodity farm products, however, now they have been joined by a huge number of tradable financial and other tradable products such as precious metals like gold, silver and platinum; livestock such as hogs and cattle; energy contracts such as crude oil and natural gas; foodstuffs like coffee and orange juice; and industrials like lumber and cotton.
As regards the issues as mentioned in Subparagraphs (1), (2), (4) and (5) of the preceding paragraph, the agency of the futures regulatory institution of the State Council shall make a decision of approval or disapproval within 20 days as of the receipt of an application.



Article 89 Any institution or market that carries out centralized trading according to standard contracts and takes the following trading mechanism at the same time or bears the feature of either of the following trading mechanism without approval of the futures regulatory institution of the State Council shall be regarded as performing futures trading in a disguised form: (1) It provides all buyers and sellers that participate in the centralized trading with a guaranty to perform the contracts; or (2) It adopts the mark to the market system and margin system, and collects a sum of margin that accounts for less than 20 percent of the amount of the subject matter of each contract at the same time.
Article 86 The futures regulatory institution of the State Council may approve the establishment of a exclusive settlement institution that is futures trading exclusively responsible for the settlement of futures exchanges, performs other related duties and bears the legal liabilities accordingly.

Article 82 As for any of the personnel of the futures regulatory institution of the State Council, or a futures exchange, or an institution monitoring the safe custody of futures margin, or a custodian bank of futures margin that divulges any state secret or any commercial secret of the client he has access to, or commits irregularities for personal interests, neglects his duties, misuses his authorities or accepts any bribe, he shall be given an administrative or disciplinary sanction.
Article 11 A futures exchange shall establish and perfect the following systems for risk control under related provisions of the State: (1) The margin system; (2) The mark to the market system; (3) The system of price limits; (4) The system of position limits as well as reports of big position holders; (5) The systems of the risk reserve; and (6) Other risk control systems as provided for by the futures regulatory institution of the State Council.
Securities, investment advisory, commodity futures, options on futures and other non-deposit investment products and services are not insured by the FDIC, are not deposits or obligations of, or guaranteed by, ETRADE Bank or ETRADE Savings Bank, and are subject to investment risk, including possible loss of the principal amount invested.

Farmers, ranchers and other food growers along with food producers, petroleum companies who either drill for oil or natural gas or refine these products - or both, financial institutions with enormous holdings in treasuries, equities or currencies, mining interests and their buyers - all these areas of production and distribution employ futures trading spreads from time to time as an important aspect of their businesses.
However, as the resistance level is approached selling increases because some traders in long positions will target this resistance level to sell and take profits, and others, knowing price pulled back from here previously, will open short trades by selling at the resistance level.

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