A guided account program is a type of trading program designed for customers that restricts trading activities to specific contracts for future delivery of commodities or particular commodity options. These programs provide recommendations or advice to participants, helping them navigate their trading decisions within defined parameters.
This term is primarily used in the context of commodity trading and investment. Guided account programs are relevant in financial and securities law, particularly concerning regulations enforced by the Commodity Futures Trading Commission (CFTC). Users may manage their participation in these programs using legal templates available through platforms like US Legal Forms, which can assist in ensuring compliance with applicable regulations.
Here are a couple of examples of abatement:
Example 1: A user enrolls in a guided account program that focuses on trading corn futures. They receive recommendations on when to buy or sell based on market analysis.
Example 2: A participant in a guided account program for oil options receives advice on optimal trading strategies during periods of market volatility. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Guided Account Program Regulations |
|---|---|
| California | Requires additional disclosures for participants. |
| New York | Imposes stricter compliance requirements on advisory services. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Managed Account | A professional manager makes investment decisions on behalf of the client. | Involves less direct control for the client compared to a guided account program. |
| Self-Directed Account | The account holder makes all trading decisions without advice. | Offers more autonomy than a guided account program. |
If you are considering participating in a guided account program, it's important to:
If your situation is complex, seeking professional legal assistance may be beneficial.
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The main purpose is to provide advice and recommendations for trading specific commodity contracts or options.