What is derivatives trading?

Derivatives trading is when traders and investors speculate on the potential price action of a financial instrument with the aim of turning a profit without owning the underlying asset. So what’s an example of a derivative market? StoneX offers derivative trading on several markets, including: Spot trading – securities traded for immediate delivery in the market on a specified date. Spot trades include the buying or selling of foreign currency, a financial instrument, or commodity. Many assets quote a “spot price” and a “futures or forward price.” Crypto futures – an agreement to buy and sell a specific amount of an underlying crypto at a specific future price on a specific date and time.Futures trading – as with crypto futures, futures are a type of derivative contract agreement to buy a specific asset at a set future date, for a set price.Foreign exchange – Foreign exchange derivatives include forward contracts, futures contracts and options. Forward contracts are typically used by investors who want to limit their risk to exchange rate volatility, while futures contracts are used by traders who are looking for large returns on their investments. Interest rate swaps – An interest rate swap is an agreement between two parties to exchange one stream of interest payments for another, over a set period. Swaps are over-the-counter (OTC) products.

How does derivative trading work?

A derivative is simply a contract between two or more parties that’s based on an underlying asset or set of assets. Although they sound complex, derivatives represent the modern form of trading that’s been around for centuries. Derivative trading is used by all types of investors to speculate on the future price movement of a market, without having to purchase the actual asset itself, in the hope of making a profit. So, when using derivatives for market exposure, you place an order or trade (usually online) to go either long or short on a specific market. You don’t own the instrument you’re trading in, you’re simply speculating on the price. If you open a long position, this means you expect the market will increase in value. If you open a short position, you expect the market will fall in value. Depending on the direction of your trade and the market movement, you’ll make a profit or incur a loss.

The complete suite of derivative markets

We specialize in providing a comprehensive offering and award-winning services across spot trading, crypto futures, interest rates, currencies, futures, options and much more.

Trade globally

We connect you with access to more than 36 derivative markets worldwide, with 24-hour service and straight-through processing of futures and options. Trade what you want, how you want, where you want, when you want – all through one single provider.

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Award-winning services for:

Professional traders

Proprietary trading groups

High net worth individuals & family offices

Institutional traders

Introducing brokers

Managed futures

A product suite engineered for your success

Trade any of your desired derivative markets, including:

Spot trading

Get exposure to thousands of assets via our cash markets

Crypto futures

Our institutional FX division offers cash-settled crypto swaps

Futures trading

We offer a full-service approach to most global futures and options around the world

FX

Market access and expertise in trading across OTC foreign exchange instruments, with 24/6 support

Interest rate swaps

One account gives you access to our deep liquidity in interest rates hedging, as well as a broad range of currencies and commodities

…and many more

A true, trusted partner

It’s simple: call us, and we’ll pick up the phone. We’ll know who you are, and we’ll get right to work on whatever you need. Our dedicated and experienced team of derivative professionals can provide the operational support you need, from integrating your trading system seamlessly with ours to resolving any issues that may arise.

As part of StoneX Group Inc., a NASDAQ-listed, Fortune 50 company, we leverage our financial strength to ensure that your funds are secure and that we can meet your needs as your strategy evolves and your business grows. As a regulated futures brokers in the United States, UK, EU, Singapore, Australia, Argentina and other countries around the globe, we handled 129 million exchange-traded contracts in 2019.

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High-touch trading for equities, options, derivatives

Benefit from pre-trade analysis, post-trade monitoring and custom recommendations for managing your positions throughout the life of your trades.

Discover the benefits of high-touch trading with StoneX.

Find out more about high-touch trading

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Frictionless, efficient trading

With access to multiple products and with freedom from the more onerous regulatory requirements imposed on banks, we can help ensure that you can use the capital you commit to your account as efficiently as possible.

Our digital customer platform provides a rich yet intuitive experience that delivers real-time views across your positions, plus analytical tools that enable you to manipulate those views, evaluate performance and optimize your strategy.

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Clearing services

StoneX’s robust back-office infrastructure enables us to manage all your clearing and allocation needs with a high degree of efficiency and expertise. Our clearing services, which include physical delivery, help our clients mitigate risk and reduce costs, while ensuring transparency in the global marketplace.

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Markets covered

When it comes to market coverage, few financial organizations can match the breadth and resources of StoneX. Explore our markets below.

Commodities

With commodity roots dating back a century, StoneX covers a range of solutions for nearly every publicly traded commodity in the world, including dairy, grains, metals, plastics, energy and more.

Explore commodities

Foreign exchange

We connect our clients to 180 foreign exchange markets and provide specialized payments solutions across 140+ currencies worldwide.

Explore foreign exchange

Securities

Our securities offerings include a complete suite of equities trading services, fixed income, interest rate hedging solutions and more.

Explore securities

Upcoming events

October

8th StoneX Multicommodities Seminar

Webinars

South America

Language: Português Brasileiro

StoneX’s largest event, aimed at bringing together market analysis and experts to provide an up-to-date and strategic overview of key agricultural markets, as well as fertilizers, energy, foreign exchange, and macroeconomics.

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October

8th StoneX Multicommodities Seminar

Webinars

South America

Language: Português Brasileiro

Learn more

October

Sugar Breakfast StoneX

Live StoneX events

South America

Language: Português Brasileiro

A strategic event that brings together StoneX risk management consultants to foster networking, updates, and planning.

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FAQ

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Reach

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.

Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.

Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.

This website is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.

StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. References to securities trading and prime services are made on behalf of the BD Division of SFI. References to exchange-traded futures and options are made on behalf of the FCM Division of SFI. You can learn more about the background of StoneX Financial Inc. on BrokerCheck.

Wealth management services are offered through StoneX Wealth Management, a trade name used by StoneX Securities Inc., member FINRA/SIPC and StoneX Advisors Inc. StoneX Securities Inc. and StoneX Advisors Inc. are wholly owned subsidiaries of StoneX Group Inc. You can learn more about the background of StoneX Securities Inc. on BrokerCheck.

StoneX One is a proprietary online trading platform through which investors and traders can open securities accounts. Accounts opened through StoneX One are currently available to U.S. persons only. Not all products are available. StoneX One accounts opened through StoneX Securities Inc. are introduced to and custodied at StoneX Financial Inc. (SFI), and all customer orders will be transmitted to SFI for execution, clearance and settlement.

Securities products offered by StoneX Financial Inc. (“SFI”) are intended only for an audience of institutional clients only. Securities products offered by StoneX Securities Inc. and investment advisory services offered by StoneX Advisors Inc. are intended for an audience of retail clients only.

This information is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX Group Inc. of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you.

Additional disclosures can be found on https://www.stonex.com/en/compliance-library/