Frequently Asked Questions

Q: What Services can Liberty Trading Group provide to Me?

A: You may receive a number of educational materials, market updates, and newsletters before and after becoming a client. However, our core offering is a Professionally Managed Commodities Option Selling Portfolio. You "become a client" by opening an account with our firm. At our core, we are a brokerage — a very specialized brokerage - but a brokerage; licensed, registered, and regulated. This means you and your funds are fully protected by all of the Federal laws, rules, and mandates provided by the CFTC.

Q: Do you accept any accounts under your $100,000 minimum?

A: No, we do not.

Q: Can I purchase your newsletter or advisory services without opening an account with your firm?

A: No. Our research, trade advisors and proprietary newsletters are for clients only and are not for sale. However, there are a number of free resources (including a "public" version of our newsletter) that are available on our website that you are welcome to use and/or receive to learn more about option selling as a portfolio strategy.

Q: Why should I open my account with you? What benefits do I receive?

A: 1. Specialized Expertise. Most clients hire us in order to benefit from our experience in selling options, and in researching the fundamentals of the underlying commodities we are trading. Few brokers, and even many money managers, have any significant experience in this strategy. Our firm allows you to hire a specialist who can not only advise you, but manage your portfolio on your behalf if you so choose. This relieves you of the burden of selecting trades, worrying about entry and exit points, ect —tasks for which you may not have the time and/or expertise to perform yourself.

2. Economy of scale. As you know, futures options are a different ballgame from equities options. Many of the options we recommend (deep out of the money) do not show bid/asks online and may be difficult to trade placing small lot orders on an online platform. We trade all of our clients at once in blocks of 200-400 options at a time - directly through an options trader on the floor. This type of trading is one where trading through the floor still holds an advantage. Placing orders of this size get floor traders attention and will generate bid/asks and ultimately, fills. You will have no liquidity issues here.

Q: Do you provide a "Track Record?"

A: Please see question #1. We are a brokerage, not a fund. Each account, including managed accounts, opens and trades on an individual basis — according to client preferences. Performance can vary depending on capital available, individual risk profile, timing, etc. For this reason, we do not, nor can we, provide any type of performance statistics like a mutual fund may be able to do. That being said, we do provide a three year archive of our trade advisories to clients. A review of these should give you a fair idea of how portfolios were positioned and how yours might look if you had an account with us. While this area of our website is password protected, you may call in to receive a temporary password if you would like to review this archive.

Q: My Hedge Fund provides somewhat "opaque" transparency as well as limited access to my funds. Is this account similar to that?

A: No. You have full transparency and complete access to your account through a regulated third party clearing firm (Peregrine Financial Group). This means 24 hour access to updated statements, automatic trade confirmations any time there is buying or selling in your account, and the ability to add or withdraw funds to or from your account at any time.

Q: Do you work with IRA accounts?

A: Yes.

Q: What is your Private Client Group?

A: The Private Client Group is for traders with at least $1 million invested with our firm. Members enjoy a special 15% fee discount in addition to private access to head trader James Cordier. Additional information is available upon request.

Q: What type of return can I expect from a portfolio with your firm?

A: We don't like to use the term "expect" because it infers some form of guarantee. No profits are guaranteed. Option selling, like any other investment, contains it own set of unique risks. Losses are possible and you should consider this a type of investment for the risk capital portion of your portfolio. That being said, most of our clients are targeting a 35 — 40% annual return on equity after fees. A custom portfolio can be designed for you with this objective in mind.

Q: How safe are my funds with you?

A: The only risk to your funds is market risk. Your funds are on deposit through a third party clearing firm (PFG) and sit in a Customer Segregated Account at JP Morgan Chase Bank. The Customer segregated account system means your funds remain in an individual account under your name outside of PFG. Your funds are not co-mingled with PFG funds, Liberty Trading funds or other account funds. In the unlikely event that PFG or Liberty Trading Group would ever become insolvent; your funds remain safe and would be 100% available to you.

Q: How do I get started?

A: Complete the account documents enclosed in your Information Pack (or call our offices to receive) and fax, mail or email back to our offices (IRA accounts may require additional forms). The instructions inside the forms will indicated which pages need completion. Once received, your forms will be processed within 1-2 business days at which point, we will be in touch with you. Funding can be done via wire transfer after the account is opened, or by simply enclosing a check with your forms. Checks should be made payable to "PFG."

Q: What happens after my account is open?

A: Once your account is open and funded, you will be contacted to schedule your first call with head trader James Cordier. James initially speaks with each new client personally and will work with you to put together a trading plan for your new account. There is no preparation necessary on your part.

Q: I am interested but have some questions. Whom do I contact?

A: Contact Liberty Trading Group directly at 800-346-1949 (813-472-4760 for International callers). We are always happy to discuss option selling strategy, our portfolios, or answer any questions you may have.