A Managed Futures account is an account in which a registered Commodity Trading Advisor (CTA) is given responsibility to make all trading decisions on your behalf. CTAs are professional money managers who manage an investor's assets using investments in the commodities markets just as a stock mutual fund manager would invest his client's assets in a variety of different stocks. As a diversified portfolio of uncorrelated asset classes, managed futures accounts have the potential to provide positive returns with potentially lesser amounts of volatility and risk. Using global futures markets as an investment medium, CTAs take long and short positions in futures contracts, government securities, and options on futures contracts. Based on technical analysis and expected potential, CTAs direct investments in areas such as: global currency, interest rate, equity indexes, metals, grains, energy, agricultural products and commodities.
Managed futures may offer a number of potential benefits as a diversified investment opportunity. As an alternative investment, managed futures may help balance portfolio volatility risk and improve the diversification of investment portfolios. Participating in global markets, managed futures have profit potential and risk reduction potential across a broad range of non-correlated markets. Unlike stocks and bonds, Managed futures have the ability to profit in any economic environment, including up, down, and even markets that are sideways. Having low correlation to the other markets and the ability to perform independently of traditional investments, managed futures may potentially help balance portfolio risk and potentially maximize profit in market cycles. Please be advised that trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. There is no guarantee of profit no matter who is managing your money. An investor must read and understand the Commodity Trading Advisor's current disclosure document before investing.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.