Under a managed trading account, a professional team of traders and brokers place positions on the futures, options and commodity markets with a client's funds. All profits and losses are kept by the individual's account, and he pays a fixed commission fee per trade executed on his account by the broker.

A futures brokerage firm will often have years of experience at their disposal, utilizing numerous staff members who will follow market charts, read dozens of market reports, listen to real time trading news, and perhaps have futures traders in the thick-of-the-action, working in A managed futures broker will be able to place your trades for you while you are at work, or on holiday.

• Minimal time spent following the markets yourself - if any at all;

• A team of professional traders and brokers with years or decades of experience;

• Stress-free entry/exits of market positions;

• Help and advice on the markets to trade;

• Advice on money management;

• Access to the world's top computerised trading systems;

• The ability to diversify your portfolio, even if you are already an active futures trader, or have other investments in the futures and options markets;

• The broker will have invested substantial capital and time in trading software and market research... probably far more than most individuals could afford.

Who should use managed futures?

We feel that most investors should think about diversifying their portfolio into the futures markets.Even active futures traders could benefit from putting a proportion of their capital in a managed futures account in case their own trading system under-performs.

What markets are covered by managed futures?

As well as stock market indices, such as the Dow Jones, S&P and Nasdaq, managed futures usually encompass commodity and currency markets. Here in Nepal, we focus only on commodities market until cental bank allow us to trade with currency markets. This diversification over a wide range of markets, as well as the fact that futures are regularly short-sold as well as bought, should enable profits to be made overall by a sound trading system in bullish or bearish markets.