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In an individual account, funds that you have deposited with your commodity brokerage firm to trade on commodity exchanges located in the United States are required to be segregated (held separately) from any of the brokerage firm's own funds.
The amount segregated will increase or diminish as you make or lose money from your trading.
Also, even though your brokerage firm is required to segregate your funds, you may still not be able to recover the full amount of any funds in your account if the brokerage firm becomes insolvent and there are insufficient funds available to cover the obligations to all of its customers.
Your account is not insured.
If, in your individual account, you trade on commodity markets located outside of the United States, your brokerage firm will set up a trading account for you, which is in addition to the account set up for your trading on U.S. markets.
The funds in your foreign account will be segregated by your brokerage firm only while you maintain an open position on a foreign market, and then only to the extent of any margin required on that position, plus or minus any unrealized gain or loss on that position.
You should ask your broker about account protection and should be aware of the limitations imposed on the protection of the funds in your commodity trading accounts.
A Commodity Pool Operator is required to disclose what percentage of the pool's assets will be held in segregation.
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Mark W. says:
The Commodity Trading Forum Here is a great link The Commodity Trading Forum
http://tfc-charts2.w2d.com/forum
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