What is a managed futures

What is a managed futures account, what are the benefits they provide,

and how is a typical managed account traded?

In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds, which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day.

The investor opens up an account at a reputable brokerage firm, the investor then funds his account. No one can touch the money in this account but the investor. The trader cannot even deposit or withdraw funds from the investor's account without the proper authorization to do so, and the investor retains full access and control over the account at all times. A managed account allows an investor to have their funds traded professionally by an experienced trader or automated system via a discretional trading agreement.

A managed futures account enables the trader to trade an investor's account on their behalf without having to transfer the funds into his account. It is the ideal way to have your money traded for maximum safety and control. You can check the balance of your account at anytime, see the daily trade activity, or withdraw or deposit funds when you please. You can also revoke your agreement at anytime if you are not happy with how the trader is managing your funds.

The trader managing the account trades all investor's accounts as one large master account using PAMM or LAMM, or MAM software, which is offered by most leading brokers. The PAMM (Percent Allocation Management Module) distributes gains, losses and fees on an equal percentage basis. In this way all accounts regardless of size obtain the same percentage returns.