Opening an account

Before you can start trading futures, your broker will require you to:
  • enter a Client Agreement
  • sign a risk disclosure statement
  • open a futures account

Your broker will usually ask you to provide a cash deposit before you can begin to trade.

Under ASX Market Rules your broker is also required to make enquiries about your financial position. The broker must make enquiries to learn your investment objectives, financial situation and particular needs, and maintain a record of this information.

Client Agreement

The Client Agreement sets out the terms and conditions that govern the relationship between you and your broker with respect to futures transactions. As part of the agreement you acknowledge that:

  • you have read and understood the risk disclosure statement
  • your broker may call on you to provide cash or security as the broker considers appropriate
  • you are subject to ASX Market Rules

You will be required to complete and sign a Client Agreement form before trading in futures even if you already have a Client Agreement for options in place with your broker.

You are also required to sign a new Client Agreement form if you change to another broker for your futures transactions.

Settlement requirements

Settlement requirements for trading futures are strict. 

You must pay any margin calls by the time stated in your Client Agreement. Under ASX Market Rules, this can be no longer than 24 hours after being called. Note also that while you may cover your initial margins with collateral, variation margins must be paid in cash. See Margins for more information.

Given these requirements, you may choose to open a cash management account with your broker to avoid any undue delays in the settlement process.

ASX Market Rules give your broker wide powers, including the ability to close out contracts, if you fail to pay or provide the necessary security.