A CTA is a commodity trading advisory. A CTA is a company that manages capital and is registered as a CTA with both the National Futures Association and the Commodity Futures Trading Commission. Generally a CTA trades futures or over the counter products that act like futures. The money that is managed by a CTA is held in a brokerage account and the CTA advisor has discretion to trade the account. The profits and losses are reported by both the CTA and the broker.
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