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Benefits of Managed Futures

Global Diversification / Liquid Markets

 

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CFTC Risk Disclosure Statement

THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL.  YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.  THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU.  THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.

 

In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the commodity trading advisor ("CTA").

 

The regulations of the commodity futures trading commission ("CFTC") require that prospective customers of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. This document is readily accessible at this site. This brief statement cannot disclose all of the risks and other significant aspects of the commodity markets. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. You are encouraged to access the disclosure document by clicking the links provided AT Forms.altavra.com. You will not incur any additional charges by accessing the disclosure document. You may also request delivery of a hard copy of the disclosure document at formsbymail.altavra.com, which will also be provided to you at no additional cost. The CFTC has not passed upon the merits of participating in any of these trading programs nor on the adequacy or accuracy of any of these disclosure documents.

 

Other disclosure statements are required to be provided before an account may be opened for you.

 

Portfolio Diversification:  Global Diversification in Liquid Markets

A successful managed futures trading advisor has the flexibility to go long or short with the markets. They can buy futures in anticipation of a rising market or sell futures in anticipation of a falling market, generating greater potential for profit regardless of current market conditions. With the advent of ever improving technologies came increasing access to a host of global futures exchanges which in turn allows managed futures trading advisors to diversify their trading systems by participating in over 150 different markets worldwide.

 

These markets include currencies, stock indices, financials, agricultural products, precious metals, energy products, and more.  As a result, managed futures trading advisors have an extraordinary variety of venues and opportunities for profit potential and risk reduction through an array of non-correlated markets.

 

The table shows the explosive growth in global futures and options volume in selected markets over a one-year time frame in millions of contracts and the percent change in volumes over that short period.

 

Managed Futures: Global Exchange-Traded Derivatives Volume

 Source:  FuturesIndustry.org

THE RISK OF TRADING FUTURES, OPTIONS AND OFF-EXCHANGE FOREX CAN BE SUBSTANTIAL.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

 

ALTAVRA Inc. | P 800-998-7870 | F 800-998-7871 | clientservices@altavra.com

 

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