What are notional funds?
An account is notionally funded when the client directs the CTA to trade the account as if the funding amount was higher than the actual funds on deposit in the client’s account. This does not, however, mean that the account may trade undermargined. Notional funding is allowed as long as certain criteria are met, including having a written agreement in place between the firm and the client . Review NFA Compliance Rule 2-34 and the Interpretive Notice 9054 for more guidance.
