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Is there a limit on potential losses?
Before participating in a commodity pool, read the disclosure document closely for information on losses.
Losses to commodity pool participants are ordinarily (but not always) limited to the amount of your participation.
Sometimes in a commodity pool, in order to protect against catastrophic losses, a loss greater than a given percentage will trigger the sale of all open positions and will result in closing the pool account.
The disclosure document must clearly state this possible course of action.
In an individual account, the leveraged nature of transactions can result in significant losses or gains, and losses may exceed your initial margin deposit.
If so, you are responsible for covering those losses with additional funds.
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