Managed Futures Account

A managed futures account is an investment account managed by professional traders or Commodity Trading Advisors (CTAs), who use futures contracts to achieve returns. Managed futures accounts can invest in various assets, such as commodities, currencies, and financial instruments, using long and short positions. These accounts offer diversification, as they allow investors to access futures markets, and are often used as a hedge against traditional equity or bond portfolios.

Example

An investor opens a managed futures account, where a professional trader actively manages futures positions in commodities and currencies to generate returns and diversify the investor's portfolio.