Commodity Pool Operator - CPO

DEFINITION of '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 securities such as futures contracts, or off exchange foreign exchange contracts.

BREAKING DOWN 'Commodity Pool Operator - CPO'

CPOs typically hire Commodity Trading Advisors (CTA) to make investment decisions for the pool. They require registration in most circumstances and must be a member of the National Futures Association.

RELATED TERMS
  1. Commodity Pool

    A private investment structure that combines investor contributions ...
  2. Dark Pool

    A dark pool is a private financial forum or exchange for trading ...
  3. Commodity Trading Advisor - CTA

    An individual or firm who provides individualized advice regarding ...
  4. Whole Pool

    In the mortgage-backed securities market, whole pools refer to ...
  5. Pooled Funds

    Funds from many individual investors that are aggregated for ...
  6. MBS Pool Number

    A number or alphanumeric character assigned to a mortgage-backed ...
Related Articles
  1. Investing Basics

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
  2. Insurance

    Futures Fundamentals: How To Trade

    At the risk of repeating ourselves, it's important to note that futures trading is not for everyone. You can invest in the futures market in a number of different ways, but before taking the ...
  3. Home & Auto

    Swimming Pools: Costs Vs. Long-Term Value

    Consider the costs of installing and maintaining a swimming pool, and compare this with the pool's utility and the market value it adds to your home.
  4. Investing

    Should You Wade Into The Dark Pools Of Liquidity?

    Dark pools of liquidity allow big investors to trade away from the public eye. They limit market impact but may leave small investors in the cold.
  5. Professionals

    General Regulations

    General Regulations
  6. Investing Basics

    Pooled Funds Minimize Risk and Reward

    Pooled funds combine money from many individuals to invest in vehicles like a mutual fund or a pension fund.
  7. Professionals

    General Futures Terminology

    General Futures Terminology
  8. Investing Basics

    Understanding the Commodity Market

    There are currently 50 physical and virtual commodity markets worldwide where almost 100 primary commodities trade through the exchange of ownership rights.
  9. Investing

    Net Asset Value

    Discover how mutual fund companies and ETFs price shares of their investment pools.
  10. Professionals

    Commodities as Alternative Investments

    CFA Level 1 - Commodities as Alternative Investments. Learn the types of commodity investment opportunities and how they can help hedge against inflation. Covers passive and active investing ...
RELATED FAQS
  1. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
  2. Do hedge funds invest in commodities?

    Learn about hedge funds that invest in commodities. Read about Commodity Trading Advisors who focus specifically on trading ... Read Answer >>
  3. Can commodities also be investments?

    Learn about the commodities trade and several different ways investors may participate. Find out about some of the advantages ... Read Answer >>
  4. Can mutual funds invest in commodities?

    Learn how investors can use commodity mutual funds to diversify their portfolios, and discover why mutual funds may be less ... Read Answer >>
  5. Which of the following would be considered a short hedge ...

    The correct answer is a) Long the commodity and short the futures Read Answer >>
  6. How can electricity be traded as a commodity by an individual investor?

    Learn the characteristics unique to electricity trading as a commodity and how investors can trade electricity futures on ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center