Deciding How to Participate in commodity market

1. Trade Your Own AccountThis involves opening your individual trading account and with or without the recommendations of a brokerage firm or an independent Commodity Trading Advisor or Broker firms (in case of Nepal) making your own trading decisions. You will also be respon-sible for assuring that adequate funds are on deposit with the brokerage firm for margin purposes, and that additional funds are promptly provided as needed.

2. Have Someone Manage Your Account

A managed account is also your individual account. The major difference is that you give someone else—an account manager—written power of attorney to make and execute deci-sions about what and when to trade. He or she will have discretionary authority to buy or sell for your account. You, of course, remain fully responsible for any losses that may be incurred.

3. Participate in a Commodity Pool
Another alternative method of participating in futures trading is through a commodity pool, which is similar in concept to a common stock mutual fund. It is the only method of participation in which you will not have your own individual trading account. Instead, your money will be combined with that of other pool participants and traded as a single ac-count. You share in the profits or losses of the pool in proportion to your investment in the pool.