commodity pool


An enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Commodity pools are analogous to mutual funds in that many investors pool their assets to gain the power to make trades that they could not make individually. Additional benefits include bypassing margin requirements and limiting risk to the amount invested in the pool.

Use commodity pool in a sentence

We formed a rather successful commodity pool, and as a result many fortunes were enriched and the future looked bright indeed.

​ Was this Helpful? YES  NO 5 people found this helpful.

The commodity pool that existed at the time within the highly sophisticated investment club allowed Hank to see that the possibility of making a large profit was enormous.

​ Was this Helpful? YES  NO 9 people found this helpful.

Johnson, while thinking about what was the best option for future return, that joining the commodity pool with the other employees instead of buying stocks alone would be his best decision.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
natural gas ETF commodity pool operator