Manage futures trading accounts are a great way to profit from futures markets; especially for those who lack trading knowledge. But there are many things to know first. Which are discussed here.
Managed futures trading accounts help peoples with lesser trading/investing knowledge to profit from futures. Managed futures trading accounts are futures contracts trading accounts which are managed by professional money managers known as Commodity Trading Advisers (CTAs). CTAs trade futures contracts on behalf of their clients. They should be registered under CTFC (Commodity Futures Trading Commission). In return of their services,
CTAs charge fees, which usually include account management fee and/or performance incentive (a fixed portion of profit).
There are now a range of managed futures trading accounts to choose from. There are accounts which trade single type of futures contracts (metal futures, equity futures, index futures, currency futures, commodity futures, etc). There are also accounts which trade multiple types of futures contracts and thus insuring diversification of investment and risk. There are strategies for proofing from upward, downward and sidewise price movements. Some CTAs look for short-term short term profits while others look for long-term profits. Most CTAs trade futures contracts based on a pre-determined plan.