Definition 1.
A managed account or fund in which professional money managers trade futures and forward contracts. Futures and forward contracts may represent agricultural products, bonds, cattle, currencies, financial instruments, gold, hogs, oil, silver, stock indexes and so on. They are actually contracts of delivery or receipt for a particular commodity between the seller and buyer of the contracts. You may trade these contracts individually, assuming all of the potential risk and reward for each contract, or invest collectively with other individuals in a managed account or fund, thus sharing the potential risk and rewards of many different contracts among investors.
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