Are Managed Futures suitable for all investors?
Managed futures are not appropriate for everyone. A determination must be made as to a particular investor´s suitability, the investor should be provided with all of the necessary information to make sure he or she understands both the risks and possible rewards of this type of investment. In addition to having the required risk capital, an investor needs to have realistic expectations about returns on investment and tolerance to drawdowns that may occur with Managed Futures products. The risk of loss always exists in Futures trading no matter how skilled a trader an individual CTA may be.
