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Commodity Trading Advisor

Trading Term

According to the National Futures Association (NFA), a Commodity Trading Advisor (CTA) is an “individual or organization which, for compensation or profit, advises others as to the value of or the advisability or buying or selling futures contracts, options on futures, retail off-exchange forex contracts or swaps.” Furthermore, providing advice includes the exercise of trading authority over a client’s account and giving advice based on knowledge of or tailored to a client’s specific commodity interest account, commodity interest trading activity, or other similar types of information. A Commodity Trading Advisor must be registered with the Commodities Futures Trading Commissions (CFTC) and, if they manage customer accounts or provide advice to clients, must be a member of the National Futures Association. See Also

  • Commodity Futures Trading Commission.htm

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