In this article, We learn about "Commodity Trading Advisor (CTA)".Let's Go!
A A Commodity Trading Advisor (CTA) is a person or firm that provides personalized advice on the buying and selling of futures contracts, options on futures, or certain foreign exchange contracts.
Commodity Trading Advisors are required to be registered as a Commodity Trading Advisor (CTA) under the National Futures Association, an industry self-regulatory organization.
CTAs work much like financial advisors, except that the CTA's role is to provide advice specifically related to commodity trading.
CTA is:
- SEC regulates stock and bond-related securities
- CFTC exchange traded futures and options products and foreign exchange
Supervision:
Registered through CFTC and NFA member.
Earning CTA registration requires applicants to pass certain proficiency requirements.
Commodity Trading Advisors (CTAs) are professional investment managers, similar to mutual fund portfolio managers, who seek to gain exposure to global financial, commodity and currency markets by investing in exchange-traded futures and options and over-the-counter forwards. Contracts that profit from changes.
In general, CTA registration is required for the principals of the company and all employees who take orders from the public or provide advice to the public.
CTA requires registration to provide advice on all forms of commodity investing, including futures contracts, forwards, options and swaps.
Commodity investing often involves the use of large amounts of leverage, so a higher level of expertise is required to trade correctly while avoiding potentially large losses.
Commodity trading advisor regulations date back to the late 1970s, when it became easier for retail investors to invest in commodity markets.
In general, a CTA fund is a hedge fund that uses futures contracts to achieve its investment goals.
CTA Funds use a variety of trading strategies to achieve their investment objectives, including systematic trading and trend following.
However, good fund managers actively manage investments, using discretionary strategies such as fundamental analysis, combined with systematic trading and trend following.
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.
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