Commodity Pool: Here the trade is executed on behalf of a group of individuals who trade commodities by means of a ‘commodity pool’. You have to purchase a share in the pool and the transactions are made for the pool as a whole and not based on the interests of an individual. And likewise, the profit or loss is shared by the entire pool.

Before making transactions you should:
• Set your goals and be aware of your capabilities to invest and handle a risk or loss.
• Know the extent of help you need from a trading advisor and signals to make decisions.
• Check the reputation and registration status of the advisor with the National Futures Association.
• Obtain and review the disclosure document before opening a trading account.
• Not hesitate to ask any question regarding trading that you do not understand or have doubts.