Also known as Accumulators, these products enable a customer to “accumulate” a short swap above the current market or a long swap below the current market, so long as the market stays within a specified range. This range is agreed upon by the broker and customer, and its limitations are typically marked by a predetermined accumulation level on one end and a barrier level on the other end.
Accumulators at IFM are typically done for zero up-front cost and are a hybrid blend of customizable and exotic options listed as one-line item. For certain qualified customers, IFM’s initial and variation margin thresholds can, in some cases, act as financing.
We currently offer 13 Accumulators that vary in risk/reward features such as:
- Euro Double Up
- Weekly Double Up
- Knock In/Barrier
Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. INTL FCStone Markets, LLC (“IFM”), a subsidiary of INTL FCStone Inc., is a member of the National Futures Association and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. IFM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of IFM. Any recipient of this material who wishes to express an interest in trading with IFM must first prequalify as an ECP, independently determine that derivatives are suitable for them and be accepted as a customer of IFM. Trading over-the-counter (“OTC”) products or “swaps” involves substantial risk of loss. This is not an offer to buy or sell any derivative. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.
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