Which term refers to actively trading derivative products alongside physical commodities, financial assets, and currencies?

The term that describes the practice of actively trading derivative products alongside physical commodities, financial assets, and currencies is managed futures. Managed futures involve the use of futures contracts and options to trade in various markets, including commodities, currencies, and financial instruments. This investment strategy allows managers to take long or short positions, providing flexibility and the potential for profit regardless of market direction.

Managed futures funds are typically managed by professional investment managers who utilize sophisticated strategies and algorithms to exploit market inefficiencies. The inclusion of derivatives in these funds allows for greater leverage and the ability to hedge against risks, making them a distinct category in the investment landscape.

In contrast, commodity funds primarily focus on investments in physical commodities rather than engaging heavily in derivatives. Closed-end funds are structured differently, often investing in a specific asset class but not necessarily trading derivatives actively. Equity funds concentrate on stocks and equities, without the same level of engagement with derivatives as seen in managed futures.