A pool of liquidity that an investment company places in futures and options with the goal of producing a certain return. Because a commodity pool contains more liquidity than investors could afford on their own, it distributes risk between investors and allows them to forego margin requirements. Commodity pools are actively managed by the company to maintain the investment goals. Commodity pools are designed for investors who wish to take advantage of a highly diversified futures and options portfolio without a large amount of capital. See also: Commodity pool operator.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.