What are the Futures managed?

Futures -managed accounts are a type of account that holds futures contracts, futures options and sometimes government futures securities. These accounts may have futures contracts in commodities, currencies and interest rates as well as in stocks. The Futures account is considered an alternative investment, so it is suitable for a sophisticated investor with a deep understanding of futures trading. Managed futures are considered to be some of the original Hedge funds.

Futures -managed accounts are similar to mutual funds that they are essentially a basket of investment that are carefully monitored, and insufficiently powerful assets are liquidated and replaced by assets that are expected to have better performance. A professional who manages an account of this type is called an advisor to trading commodities. Consultants for commodities trading can earn a percentage of the total account size it manages or can receive a percentage of profits for their work. Aktivums that are included in TThese accounts are very liquid and highly regulated, and the advisors who trade them are very carefully examined by regulatory bodies. In the United States, these advisors must register with the Commission of Commodity Futures (CFTC), which is part of the National Futures Association (NFA).

While they may have some similarities, the main difference between futures -managed accounts and mutual funds is that the entry -managed futures accounts can have long and short positions in futures, as well as the possibilities of futures contracts. Mutual funds cannot hold short positions or possibilities and cannot hold positions on the futures markets. Advisers for trading commodities who manage these funds tend to participate in short -term trading, another difference between them and mutual funds.

Strategies used to manage these types of accounts can be complex and diverse. Many of them handleThey use the tracking trend that monitors the trends of available investments. The manager buys those futures that indicate new high prices and sell those that indicate new low prices. Some managers also consider basic analysis of basic assets, possibilities of enrollment in security positions, or use arbitration strategies.

Manage Futures tends to correlate with traditional investments such as mutual funds, stocks and bonds. For a sophisticated investor, this can reduce volatility in the overall portfolio. For example, the return on shares and bonds tends to decrease during the inflation period, while the Futures managed tends to have higher returns in the same period of time.