Commodity Trading Advisor Regulation

CFTC Unravels $906,000 Commodity Trading Advisor Scam

We are a Commodity Trading Advisor CTA” focused on tropical soft commodity markets, especially coffee contracts traded on registered derivative exchanges; we are based in Medellin, Colombia. Whether you wish to make your own decisions and be what is called self-directed, work with a licensed Series 3 broker, find an automated system, where the trades are placed for you or have your account personally managed by a money manager there are some important steps to take.

“With South America becoming such a major soybean and corn producer, traders not only have to watch what is happening here in the spring and summer, but also what is happening there in the fall and winter (their growing season),” says Mike Zarembski, senior commodity analyst at optionsXpress.

Every Futures commodities broker dreads having this conversation with their clients, as it is necessary with every new trader; however, much to a broker’s chagrin, every new trader will say that they already understand when in fact they rarely do. Let me assure you, if you’re a new or even intermediate commodity trader, you probably don’t.

#4. One can trade in commodities by registering a commodity trading account in one of the three commodity exchanges – the Multi Commodity Exchange of India Ltd (MCX), the National Commodity and Derivative Exchange (NCDEX), and the National Multi Commodity Exchange of India Ltd (NCME).

There are inter-commodity trading spreads such as buying one contract month of a commodity versus selling a different month of the same commodity, for example: buying May Corn and shorting December hoping that the price of May Corn gains on the December Corn price.

Day traders are divided into two opposing groups whenever the question of trading during news releases comes up. The first group (approximately 50%) believe that the new releases affect the markets in unexpected ways (such as quick large moves in both directions), so they will avoid trading during new releases by making sure that they are flat (i.e. do not have any active trades).

I hope this post and other material on my blog and twitter teaches you how to approach trading markets such as Bitcoin and Altcoins, provides you with valuable, practical, and effective tutorials and insights that is easily understood and applied, and enables you to develop a profitable trading strategy that is tailored to your personal requirements and risk appetite.

The CTA performance information does not contain opinion or analysis of Equinox Fund Management or any of its affiliates, and the completeness and accuracy of performance information reported to Equinox Fund Management cannot in all cases be independently verified.

In the U.S., the most popular exchanges include those run by CME Group , which resulted after the Chicago Mercantile Exchange and Chicago Board of Trade merged in 2006 (the New York Mercantile Exchange is among its operations), the Intercontinental Exchange in Atlanta and the Kansas City Board of Trade.

Keeping with the US, there’s also the other consumer confidence indicators from there; the ABC index, and the University of Michigan consumer sentiment index, the trade balance (which is expected to stay around negative 42B), the consumer price index (which is likely to show inflation around 1%), the monthly budget statement, and of course retail sales on Friday.

Now that March ’06 Corn has continued its steady upward trend to new highs, it’s time we move our stop-loss from the original all-time low point of 199.50 to the last support level of 204.50. The Commodity Trading Advisor recommends doing this simply to prevent any substantial losses should the market move against us. If the market breaks through that support level and moves further south, we will be out of the market with a loss of only $300.00 (plus commissions) – this is a couple hundred less than the margin we initially were willing to risk so the Commodity Trading Advisor has effectively reduced our exposed risk by over $200.00. As prices continue their upward climb, we will move our stop-loss up further.

4 Persons who qualify for the exemption from CTA registration under CFTC Regulation 4.14(a)(9) (i.e., those who do not direct client accounts or provide advice tailored to a particular client) but nonetheless choose to register are exempt from the requirement to become a member of an RFA.

Leave a Reply

Your email address will not be published. Required fields are marked *