Type 2 regulated activity?

Type 2 regulated activity?

• A. Dealing in futures
• B. Dealing in securities
• C. Leveraged FX trading
• D. Advising on securities

Answer: (A)

Dealing in futures contracts is the Type 2 regulated activity. This category covers entering into or concluding futures trades on behalf of clients or for clients. Futures are standardized contracts to buy or sell an asset at a future date, typically traded on organized markets. This is distinct from dealing in securities (Type 1) or advising on securities (Type 4). Leveraged foreign exchange trading isn’t described as a Type 2 activity unless it involves futures contracts, so it doesn’t fit as the Type 2 activity.

Dealing in futures contracts is the Type 2 regulated activity. This category covers entering into or concluding futures trades on behalf of clients or for clients. Futures are standardized contracts to buy or sell an asset at a future date, typically traded on organized markets. This is distinct from dealing in securities (Type 1) or advising on securities (Type 4). Leveraged foreign exchange trading isn’t described as a Type 2 activity unless it involves futures contracts, so it doesn’t fit as the Type 2 activity.