FOREX INVESTMENTS

Have you heard about Forex, but don’t understand the risks and rewards of investing? If so, click here to learn more about the fastest growing market in the world.

HEDGE FUNDS

Did you ever wonder what makes Hedge Funds so successful? If so, click here to learn the real story about the hedge fund market, as well as the benefits and risks to hedge fund investing.

MANAGED FUTURES

Have you heard that Managed Futures Trading is rare and quite risky? Well, click here to learn the facts about one of the most profitable investment markets in the world.

PRIVATE EQUITY

Are you interested in learning more about Private Equity or Venture Capital investments? If so, click here to get more information on the market that fuels wall street.

PRIVATE PLACEMENT

Are you interested in Private Placement Programs, but don’t know what to believe? If so, click here to start learning fast from someone who has been successful.

Home » MANAGED FUTURES

What is Traded for Managed Futures Accounts?

managed-futures-account-traderAs we have mentioned in prior articles, within just 30 years, managed futures has transformed from a small niche into one of the biggest investment markets in the world. With commodity prices skyrocketing and yields higher than ever, smart money is leaving the equity markets and heading straight for the managed futures industry.

You may be thinking, this sounds interesting, but what’s actually traded in a managed futures account?  Well, in this article we’ll answer that question and more.  To make things simple, we’ve listed the main sectors of the futures industry, and the primary markets that are traded.  This will give you a basic understanding of managed futures, and the popularity of the markets within it.

List of Futures Markets


Energy Futures
:  This is one of the most actively traded sectors in the managed futures industry. The main energy futures are crude oil, heating oil, gasoline, and ethanol.

Metal Futures:  With the recent financial crisis and high price of gold, metals have become very popular amongst managed futures traders.  The main metal futures are gold, silver, copper, and platinum. With gold prices at new highs, most traders are joining in to take advantage of growing liquidity.

Grain Futures:  The grain markets have moderate volume, and are far less popular than metal, energy, and stock futures. The commodities which are considered grain futures are wheat, corn, soybeans, oats, and rice. Though some managed futures traders specialize in this area, grain markets are far more volatile.

Currency Futures:  In the managed futures market, currencies are very popular due to the wide number of pairs to choose from.  Some examples of currency futures are the U.S. Dollar Index, British Pound, Canadian Dollar, Swiss Franc, Japanese Yen and Euro FX.

Stock Index Futures:  This sector of the managed futures industry is the most popular of all.  In fact, once stock indices became tradable, the futures industry exploded almost overnight! Some examples of stock index futures are the S&P 500, Nasdaq 100, Dow Industrials, NYSE Composite, Russell 2000, and the Nikkei.

Meat Futures: This is a sector of the managed futures market which very few traders specialize in.  Due to low trading volume, meat futures prices can be quite volatile.  Some examples of meat futures are live cattle, pork bellies, lean hogs, milk, and butter.

Soft Futures:  This is another sector which few managed futures traders specialize in. Though there are some who have success, the markets in this sector can be very volatile.  Some examples of soft futures (“softs”) are coffee, sugar, cocoa, lumber, and orange juice.

As you can see, there are a number of different markets that managed futures traders can choose from.  If you want to “trade breakfast”, you can invest in orange juice and coffee futures.  On the other hand, if you want to trade equities, you can invest in the S&P 500, Dow Index and more! Either way, whether you’re an investor or trader, the futures market is bound to have something that interests you.

Though the information in this article may seem simple, it’s very important to understand the markets before investing in managed futures.  If you’re an investor, this will allow you to ask the right questions, and better define your risk before moving forward. In contrast, if you are an aspiring trader, understanding the different futures markets will allow you to find your niche, and shorten your path to success.

Remember, whether the topic seems basic or complex, education is the key to managed futures success! Take a few hours and get informed on managed futures, it could be break you were waiting for…

InsideTrade LLC StaffPhone:

(949) 444-2111
Info@InsideTradeLLC.com

11 Comments »

  • DAY TRADER said:

    I have traded natural gas for 17 years, Good article to help some of the beginners understand how great the futures business can really be.

  • Understanding Prices in the Gold Futures Market (Video) | InsideTrade LLC said:

    [...] link to the economy.  By taking the time to watch this video, you will start to understand the Gold futures market, and most importantly, you will learn how to benefit from [...]

  • Managed Futures Accounts, ROI Possible? | InsideTrade LLC said:

    [...] may range between 50-90% per year. High Risk: Those who would be considered “high risk” managed futures traders only have one goal in mind, profit.  Some of these traders can use such high leverage that they [...]

  • How Do I Open a Managed Futures Account? | InsideTrade LLC said:

    [...] Steps to Open a Managed Futures Account [...]

  • Futures Trading, Profit in Good or Bad Markets | InsideTrade LLC said:

    [...] market analysis, not the growth of the unstable equity markets.  The amazing thing is, some managed futures traders earned 100%+ during the financial crisis while the rest of the world lost 40%+ trusting [...]

  • Quoting Alternative Investment Yields Legally | InsideTrade LLC said:

    [...] Futures:  For all licensed managed futures traders, yields must be audited and verified by the NFA/CFTC to solicit investors.  If you speak [...]

  • uberVU - social comments said:

    Social comments and analytics for this post…

    This post was mentioned on Twitter by WeInvestOnline: What is Traded for Managed Futures Accounts?: As we have mentioned in prior articles, within just 30 years, man.. http://bit.ly/1RLPjK

  • JE8 said:

    Thanks for this. It's really helpful getting a better understanding. I also really like the term "breakfast trading". hahaha Maybe I'll become a lunch trader!!!!!! :)

  • Understanding Risk vs. Reward in Alternative Investments | InsideTrade LLC said:

    [...] Futures:   Risk is typically assessed by looking at the audited history of the managed futures trader, focusing on the max “draw down” months.  Though this usually worst case scenario you will [...]

  • Bertha said:

    At last! Someone who undesrntads! Thanks for posting!

  • jim said:

    currency futures are safer than forex brokers….again 15% gains if you are lucky. there's no free lunch.

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.


four × 3 =

);