Futures FAQ
What can I trade on SMART?
SMART offers direct, online trading of a broad range of popular commodity futures including gold, silver, crude oil and natural gas.
Direct online trading of financial futures on live streaming prices is available through the trading platform. The financial futures available include:
- Stock indices
- Interest rates
- Foreign currencies
What Exchanges are available?
Futures trading through some of the world's major exchanges including CBOT, CME, Euronext.liffe and Eurex.
What types of futures orders are available?
Market, limit and stop orders can be placed through SMART, and are available for all futures contracts tradable through the platform. In addition, clients can use trailing stop orders to lock-in profits in case the market moves against their futures position. Stop-limit orders are available subject to support by the exchange on which the contract is traded. The order types available are noted on the Futures trading rates and conditions pages.
What is Initial Margin?
The initial margin is the collateral per contract that you must have in your account to open a position.
What is Variation Margin?
In addition to the Initial Margin, open futures positions require that you maintain a current Variation Margin (per contract) on your account at all times. The Variation Margin is calculated by reference to the market price of the contract. If the funds in your account fall below this margin, you will be subject to a margin call to either deposit more funds to cover your positions or close positions. If your margin situation is not remedied, we will close positions on your behalf.
Expiry of Futures Contracts
Please note that SMART does not support physical delivery of the underlying commodity upon expiry of a futures contract. We therefore advise you to be aware of the expiry and first notice dates of any futures contracts you invest in and ensure that you close your position before this date. If you do not close a futures position before its expiry or first notice date, the platform will automatically close your position for you at the first available opportunity at the prevailing market rate. Any resulting costs, gains or losses will be passed on to you. The last trading day of a futures contract is dependant on the exchange and the type of contract. Please see the contract specifications for more information.
If you require any assistance or clarification regarding the expiry of futures contracts on SMART please contact your Account Manager.
