Arbitration provides a method for the fair and impartial resolution of disputes. Disputes submitted to NFA for arbitration normally involve a customer request for compensation for losses alleged to have been incurred because of some improper action of a futures trading professional or firm. Subject to certain exceptions, arbitration is mandatory for all NFA member firms and their employees. At its discretion, the NFA also may provide arbitration between two customers or between NFA members and associates. Once the parties have agreed to arbitration, disputes can be resolved only through NFA unless both parties agree to some other method. Parties pay their own legal and travel expenses and a filing fee based on the amount of the claim or counterclaim. In arbitration, the disputants submit their arguments and evidence to a neutral arbitrator or panel and agree to be bound by the NFA decision. Decisions and monetary awards generally are nonappealable, are binding on NFA members, and court-enforceable. The NFA maintains a list of arbitrators knowledgeable in futures trading in several States. Steps involved in arbitration are delineated. A glossary is included.