The Role Of A CTA, Commodity Trading Advisor

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Date Added: May 09, 2008 06:02:20 PM

Category: Business & Finance: Derivatives and Risk Management

Commodity Trading Advisor, Genuine Trading Solutions, a registered CTA with the CFTC, says the role today of a CTA is constantly evolving.Dwayne Strocen, President of Genuine Trading Solutions says once upon a time a Commodity Trading Advisor was content to be known as a Portfolio Manager trading commodities and futures for a managed futures fund. As today’s investor becomes more sophisticated and today’s selection of investment products becomes ever more complex and varied, the need for the CTA to diversify becomes even more acute.So what exactly is the role of today’s CTA. Certainly trading of derivative products for a managed futures fund continues to be as important as before. A CTA has also become more involved with derivative analytics. This role is essentially focused upon becoming an analyst to structure and analyze the more multi-faceted requirements demanded by hedge funds, pension funds and structured products.The use of derivative analytics to manage the adverse risk of an equity or bond portfolio brought about by adverse market conditions is critical in preserving asset growth. The uses of hedging to prevent volatility has long been understood by the largest institutions but is now available to the smaller sized company and to the individual investor. No doubt as products continue to evolve so to will the CTA evolve to meet the need of today’s professional money manager.Company website: http://www.genuineCTA.com/

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