Is my investment used to acquire/purchase assets?

No, your invested amount will be used as margin in order to enable you (or your advisor) to make transaction in FOREX market on the Futures' exchanges.

What is margin?

Margin is the amount of money required to make financial transactions for a larger amount. For example, if someone wants to trade a US$ 100,000/- contract in the FOREX market and the required margin is 2%, then the investor can do the trade using US$ 2,000/-.

How do the investors benefit from margin trading?

Margin trading surely increases the profit potential by many folds. Here, it should also be understood that the risks are also magnified proportionally.

Will I be required to give my money to S&S Brokerage House?

No you are not required to give money to S&S Brokerage House or any of its employees.

Who gets to keep my invested amount?

In case of Futures investment account, you will send money to a “Customer segregated account” being maintained by the Main Broker who is the clearing member of the exchange. These accounts are regulated by National Futures Association (NFA) and money, including profits, in these accounts cannot be used by anyone, not even by the clearing member.

In case of FOREX investment account, you will send money to the Main Broker’s account. So it is very important that you choose a very sound FOREX broker.

Is there any minimum period for keeping my investment amount?

No, you can deposit or withdraw anytime.

How and when can I get my money back? Can I withdraw my profits?

You simply have to sign a withdrawal request form and the money will be credited to your bank account like a regular bank remittance. Yes, you can withdraw profits or any other amounts anytime.

Will I lose money if markets are bad or going down?

Firstly, your invested amount is not used to purchase any assets. Therefore, it does not affect you if the markets are up or down.

Secondly, you (or your advisor) are allowed to enter in either direction which is Buying - if you feel the rate will go up, OR Selling – if you feel the rate will go down for a particular currency or commodity.

In short, if you Buy at a lower rate to open your position and then Sell at a higher rate to liquidate (close) that particular position, then you make a profit.

Also, if you first Sell at a higher rate to open your position and then Buy at a lower rate to liquidate (close) that particular position, then you make a profit. Positions taken in the wrong direction can incur a loss therefore it is very important to open your position in the correct direction.

How can I check the balances in my investment account?

For FOREX, you will have direct access online via internet. So you can check or trade anytime when the markets are open.
For Futures, you will receive daily statement via email directly from the Main Broker.
In any case, you can also request for a fax or mail statement on a daily basis