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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

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    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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