Notional funding, for those that don’t know, is the ability to fund your account below its nominal value (fully funded value), but to still trade that account as if it was at its nominal value. This is becoming increasingly common in the institutional investment world, with an increasing number of CTAs offering this too. In the last few years, with the backing of the NFA and the CFTA, managers are now even allowed to quote their performance on this basis (as a percentage return on a fully funded basis, even if it is partially funded).

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