---
id: "concept-cta"
type: "concept"
source_timestamps: ["00:00:50", "00:01:02"]
tags: ["finance-industry", "hedge-funds"]
related: ["concept-macro-trading"]
definition: "A type of investment fund that trades primarily in futures contracts across various asset classes, not just physical commodities."
sources: ["dillian"]
sourceVaultSlug: "jared-dillian-macro-trading-wealth-2026Jun25"
originDay: 6
---
# Commodity Trading Advisor (CTA)

## Definition

A type of investment fund that trades primarily in futures contracts across various asset classes, not just physical commodities.

## Detail

A Commodity Trading Advisor (CTA) is a financial regulatory classification, but in practice, it functions similarly to a hedge fund that operates primarily in the futures markets.

Despite the name 'commodity,' CTAs are **not** restricted to trading physical goods like gold or wheat. They can trade any asset class that has a futures contract associated with it, including:

- Currencies
- Bonds
- Interest rates
- Equity indices

The term is somewhat of a misnomer, as modern CTAs are often heavily involved in financial futures and [[concept-macro-trading]] strategies rather than strictly agricultural or energy commodities. [[entity-armington-capital]], founded by [[entity-jared-dillian]], is structured as a CTA.

## Related

- [[concept-macro-trading]]
- [[entity-armington-capital]]