EDU Articles
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Who is a commodity trading advisor (CTA)?
A Commodity Trading Advisor (CTA) is registered with the National Futures Association (NFA) to manage client funds in a managed futures account (MFA) or other pooled investment such as a hedge fund or commodity pool in which the primary instruments being used are commodity futures, swaps, and other commodities derivatives.
CTAs are a particular type of money manager specializing in commodities. Commodities Trading Advisors (CTAs) are licensed to manage commodity pools, managed futures accounts, and commodity-based hedge funds on behalf of clients.
The FINRA Series 3 test provides a certification toward this end, but other proficiency qualifiers can be used. The CTA will submit reports about the holdings in the account to the Commodity Futures Trading Commission (CFTC).
Futures and the instruments that CTAs can use extend across the a spectrum of assets, from soft and hard commodities to currencies, swaps and options, and even equity index futures and single-stock futures.
How do Advisors Charge and How Much Should I Pay?
What is a Registered Investment Advisor (RIA)?
What is triple witching?
Triple witching hour is when three types of derivatives expire at once, which happens once every quarter in the US
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How Do I Invest Money in My Cash-Balance Plan?
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Is there a Benefit to Self-Managing?
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What is Private Equity?
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What does Leverage Mean?
Leverage is the use of borrowed capital or debt to try and increase the potential return of an investment
What is a Rate Swap?
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What is Bad Debt?
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How Much Will Individual Health Coverage Cost?
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What are Pivot Points?
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