What is a'managed futures account'?

What is a 'Managed Futures Account'. A Managed Futures Account is an alternative investment instrument, similar in structure to a mutual fund, but with a focus on derivatives, including futures contracts.

What are futures?

What are 'Futures'. Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on...

What is a managed futures account (MFA)?

A managed futures account is a type of investment fund that holds derivative securities. It is regulated by the CFTC and NFA, and its investment managers face additional oversight. The demand for managed futures accounts has grown in recent years, with assets under management (AUM) approaching $400 billion as of 2018.

How do futures contracts work?

Typically, futures contracts trade on an exchange; one party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date. The selling party to the contract agrees to provide it.