EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is a commodity pool?
Commodity pools are like the REITs of the commodity world, and some of them can be categorized as hedge funds or managed futures accounts (MFAs).
Accredited investors, who meet qualifying requirements regarding income and total net worth, pool their money to be managed by a commodity pool operator (CPO) or commodity trading advisor (CTA) for the purpose of investing in commodities and commodity derivative instruments.
The National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) regulate commodity pools. Accredited investors can participate in commodity pools, which are funds that invest solely in commodities and their derivatives.
Where commodities are involved, the SEC is not the regulatory authority; these investments fall under the scope of the Commodity Futures Trading Commission (CFTC) and the National Futures Association. They are managed by commodity pool operators (CPOs) or commodity trading advisors (CTAs), which are titles that could belong to a hedge fund manager.
By pooling the money of many accredited investors, the fund is able to take institutional-level positions that would not have been available to any of the investors individually.
What are “Dark Pools” of Money?
What is an Electronic Communication Network (ECN)?
What is a currency swap?
In a currency swap, institutions will loan each other an equal principal amount at the current exchange rate (1-30 yrs)
How Can I Use the Money From My 529 Plan?
Money from 529 Plans can be used for tuition, books, supplies, room and board and, as of recently, computers
What do I need to know about investing in FOREX?
Forex trading can be profitable but it can also be risky. The daily volume of FOREX is about 3 trillion dollars
What is a Traditional IRA?
A Traditional IRA holds money tax-deferred until retirement. An IRA is an account with tax-deferred growth of assets
What is Economies of Scale?
Economies of Scale is a concept that the efficiency of production rises as the quantity of goods produced increases
What is a Balloon Payment?
A balloon payment is a lump sum due at the end of a balloon loan term. These terms are usually relatively short (5 yrs)
What is the Home Market Effect?
The home market effect (HME) is a theoretical term used in trade theory economics, describing the concentration of an...
What is an Investment Banker?
Investment bankers are proficient analysts themselves, but they have subordinate financial analysts, that the numbers
What is Mortgage Interest Deduction?
Mortgage Interest Deductions are allowable income tax deductions that equal the amount of mortgage payments in a year
What are Multichains and Sidechains?
Sidechains are blockchains which handle assets off of a main blockchain and are able to return them to the main blockchain at a future date