MANAGED FUTURES ACCOUNT

An account that is similar to a mutual fund, except positions in government securities, futures contracts and options on futures contracts are used in order to look after the portfolio. Professional money managers, also known as commodity trading advisers, overlook managed futures account and decide on the positions based on anticipated profit potential. It also offers possibility for a reduced portfolio volatility and an ability to generate profit in any economic environment. In the United States of America, Commodity Futures Trading Commission and the National Futures Association regulate managed futures account.