Commodity Pool

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Dictionary Says

Definition of 'Commodity Pool'

A fund that collects investor contributions for use in futures and commodity option trading.
Investopedia Says

Investopedia explains 'Commodity Pool'

Commodity pools are similar to mutual funds because by pooling their assets, investors are able to make trades that they could not make on their own. Commodity pools also limit investors' risk to the amount they have contributed into the fund.

Related Definitions

  • Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. ...
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  • Commodity Pool Operator - CPO

    Persons or limited partnerships responsible for investing a commodity pool's assets in commodity-futures and options positions. Commodity pool operators solicit funds for trading in ...
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  • Futures

    A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date ...
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    • Managed Futures Account

      An account that is like a mutual fund, except that positions in government securities, futures contracts and options on futures contracts are used to manage the portfolio.
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    • Oil ETF

      A category of exchange-traded funds that invest in companies engaged in oil and gas discovery, production, distribution and retail. Some oil ETFs may be set up as commodity pools – with ...
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