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Agricultural Customer Resources

Many agricultural producers use the futures and options markets to hedge against falling prices and maximize their bottom lines. Whether you’re new to using futures and options as risk management tools or an old hand, here are a number of checklists, articles and resources that can help you learn more about the markets, risk management planning, and avoiding problems or bad actors. Learn more about protections for agricultural customers.

 

Customer Advisory: Beware of Gold and Silver Schemes Designed to Drain Your Retirement Savings
Precious Metals
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Some unregistered gold and silver dealers are advising investors to use relaxed retirement plan distribution rules in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to buy precious metals. But customers should talk to qualified retirement, tax, or legal advisors first.
Article: 6 Steps to Take after Discovering Fraud
Spot and Avoid Fraud
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Have you fallen victim to a fraud during the COVID-19 pandemic? These steps can help protect you from further theft, inform you about how to lodge a fraud complaint, and offer guidance to avoid fraud in the future.
Article: Don’t be Re-Victimized by Recovery Frauds
Spot and Avoid Fraud
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During COVID-19, be on alert for recovery frauds. If you have fallen victim to a fraud, offers to recover your lost funds can turn out to be just another scam. Here are the warning signs you should look for and tips to help you avoid recovery frauds.
Customer Advisory: Learn About Risks Before Investing in Commodity ETPs or Funds
Futures Market Basics
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Trading vehicles that use futures contracts or other commodity interests may be organized as exchange-traded products or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds or mutual funds that invest in stocks, bonds or other asset classes.
Article: Isolated? Don’t Make Snap Investment Decisions
Spot and Avoid Fraud
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Social isolation and financial strain can make people more vulnerable to fraud. If someone approaches you with an investment or trading opportunity, consider running it by someone you know and trust first.
Customer Advisory: Beware of Fee Scams Targeting Workers Sidelined by COVID-19
Spot and Avoid Fraud
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Unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to COVID-19. The scams promise unrealistically high profits, but later force victims to pay excessive “fees” and “taxes” to get their supposed earnings.
Customer Advisory: Be on Alert for Frauds Seeking to Profit from Market Volatility Related to COVID-19
Spot and Avoid Fraud
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Fraudsters commonly use major news events, such as the spread of COVID-19, to add credibility to their cons or manipulate emotions. You can better protect yourself by learning to recognize common mental biases that everyone has, as well as common fraud tactics—and by taking a few preventative steps.
Article: If You Are About to Trade
Spot and Avoid Fraud
Before you make a trade, be sure you understand these basic principles that will help you spot and avoid fraud.
Article: Basics of Futures Trading
Futures Market Basics
Learn the fundamentals of the futures market, who uses futures how market professionals are regulated, and what to consider before getting started.
Article: Economic Purpose of Futures Markets and How They Work
Futures Market Basics
Futures markets allow commodity producers and users to hedge price risk. This allows them to conduct business with greater certainty and helps stabilize prices for consumers.
Article: Understand Your Contractual Obligations
Futures Market Basics
Learn the nuts and bolts of trading commodity futures and options contracts, and the intermediaries involved in the trading process.
Article: How to Read Futures Price Tables
Futures Market Basics
Prices are available from a variety of sources, here’s a general rundown of how prices and volume are reported with explanations of key terms.
Article: Futures Glossary
Futures Market Basics
Look up specialized terms and phrases of the commodity futures, options and swaps markets.
Article: False Promises of Profits as a Result of Natural Disasters
Spot and Avoid Fraud
They may damage crops or disrupt production, but well-known events do not necessarily increase the likelihood of making profits in commodity futures or options trades.
Article: Signs of Fraud
Spot and Avoid Fraud
The schemes may change, but the common tactics fraudsters use stay the same. Learn how to spot them.
Article: Before You Trade
Spot and Avoid Fraud
Check the registration and disciplinary history of your financial provider, and ask questions before you invest.
CFTC/SEC Investor Alert: Binary Options and Fraud
Binary Options Fraud
Many online binary option trading platforms operate in violation of the law. Some of these unregistered platforms have refused to credit customer accounts, denied fund reimbursement, committed identity theft, and manipulated their software to generate losing trades for customers.
Customer Advisory: Use Caution When Buying Digital Coins or Tokens
Bitcoin and Digital Currencies
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The market for digital coins and tokens is still very young and there is no widely-accepted standard for placing a value on a particular coin or token. You need to ask about your rights, research what could affect the future value of a digital coin or token, and exercise caution.
Article: Four Things That Can Help Reduce Your Risk of Forex Fraud
Forex
Check out companies, understand the basics, be skeptical about claims of big returns and low risk, and don’t risk money you can’t afford to lose.
Investor Alert: Watch Out for Fraudulent Digital Asset and “Crypto” Trading Websites
Bitcoin and Digital Currencies
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The CFTC and SEC have recently observed investment scams where fraudsters pose as “ctryptocurrency” advisory trading businesses touting proprietary trading systems or mining farms.
Customer Advisory: Risks of Virtual Currency Trading
Bitcoin and Digital Currencies
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Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Learn more about the risks associated with this digital asset.
Customer Advisory: Beware of “IRS Approved” Virtual Currency IRAs
Bitcoin and Digital Currencies
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Be cautious of sales pitches touting “IRS approved” or “IRA approved” virtual currency retirement accounts. Virtual currency prices sometimes experience wild price swings. This volatility is not reduced or limited just because the virtual currencies are held in an IRA.
Customer Advisory: Beware Virtual Currency Pump-and-Dump Schemes
Bitcoin and Digital Currencies
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Pump-and-dump schemes occur in the largely unregulated cash market for virtual currencies and digital tokens, and typically on platforms that offer a wide array of coin pairings for traders to buy and sell. Learn the warning signs and how these schemes operate.
Customer Advisory: There’s Nothing to Like about Scammers on Social Media
Bitcoin and Digital Currencies
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Use extra caution when considering trading advice, products or services touted on social media. It’s easy for fraudsters to create a profile that hides their true identity, or use multiple profiles to promote their schemes. Find out what to look for, and how to avoid getting lured into their frauds.
Article: Avoid Unregistered Binary Options Trading Platforms
Binary Options Fraud
These websites commonly are operated in other countries with fake U.S. addresses. They also regularly feature unreasonable claims of “wins” or big returns, phony testimonials, and fake social media comments.