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This statement details the number of contracts bought or sold and the prices at which the contracts were bought or sold, as well. A futures commission merchant plays an essential role in enabling customers to participate in the futures markets.
An FCM also has the responsibility of collecting margin from customers. Although not its only function, the purchase and sales statement lets the customer know when an existing position, either long or short, is closed, called offsetting the position. Specifically, an offsetting transaction is an activity that exactly cancels the risks and benefits of another instrument in a portfolio.
The trader uses it when it is not possible to close or end the original transaction, as desired.
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