How to trade

ASX Grain Futures & Options gives you the opportunity to hedge (protect) or trade Australian grain markets. To benefit from this market you need to:

Understand the contract you intend to trade

The ASX Grain Futures and Options website contains all the information you need to grasp the basics to enable you to trade.

Like all exchange traded futures and options, ASX Grain Futures and Options contracts are standardised. The relevant details for each contract are listed in the contract specifications. To understand the contracts on offer there are a number of articles available.

If you would like further information please do not hesitate to contact ASX.

Establish an account with an ASX broker

Hedgers or traders wishing to access the ASX market need to have an account open with an ASX broker. An important decision you need to make is your choice of broker. Due to the recent market growth, ASX Grain Futures and Options are serviced by five broker firms. Except where noted, these firms hold the necessary accreditation and qualifications on a company and individual level to service the ASX directly. 

You should feel comfortable with your broker and have confidence that they will provide the sort of service you require. The broker firms listed offer different services, some provide an institution only service with order execution and clearing capability, others are retail and institution focussed and may offer trading advice.  

Under the Corporations Law and ASX Operating Rules, an adviser must consider a person's investment objectives, financial situation and particular needs in making any securities recommendations. It is important that you have confidence that your adviser understands your circumstances before you instruct them to act on your behalf.

Establish an account with an ASX clearer

One key aspect of ASX Grain Futures and Options is that all trades are cleared by the ASX Clearing Corporation(ASX Clear). Through the process of novation, ASX Clear becomes the counterparty to all trades. ASX Clear then manages the financial integrity of the market by actively margining all market trades. It is for this reason that an account with an ASX clearer is required so that all positions held can be cleared. As was discussed above, the brokers currently serving the market are also clearing participants, if you would like to clear through a third party this should be discussed with the brokers.

Risk Management Advisers

If hedging or trading on derivative markets is a new interest, you may prefer to pursue the services of a Risk Management Adviser  (RMA). While RMA differ slightly in their product offering, education and trading advice are usually standard. With price risk management and grain marketing gaining more attention there is a large number of RMA that you can choose from and they are located throughout Australia's grain producing regions.

An adviser should hold an AFSL (Australian Financial Services License) issued by the Australian Securities and Investment Commission.