Commodity Exchanges

Commodity Exchanges - CBOT, CME, NYMEX, NBOT...

There are more than a dozen major commodity exchanges around the world, reflecting the global nature of speculation today.

Chicago Board of Trade (CBOT)

The Chicago Board of Trade for example trades a wide variety of commodity types. On the exchange, traders will find everything from corn, soybeans, wheat and oats to several metals contracts: 100 oz Gold, 5,000 oz silver and newer 'mini' contracts for both. Mini's are contracts in which the amount covered by a standard contract are smaller than the traditional amount, allowing for a lower initial investment and smaller price increments or 'ticks'.

The CBOT also offers an array of non-physical 'commodities' futures contracts. Government bonds futures contracts are traded: 30-year bonds, 10-year notes, 5-year swaps, and more. A swap is the combination of a cash trade and a forward - similar to futures. They're used primarily for hedging. The CBOT also trades a number of indexes, such as the Dow AIG Index (a commodity index), and the Big Dow (an index on stocks).

Chicago Mercantile Exchange (CME)

Also housed in Chicago, the CME (Chicago Mercantile Exchange) trades commodities as it has for over a hundred years. Reflecting its long history, the exchange trades live and feeder cattle, hogs, pork bellies and others. Lumber, milk, butter and even fertilizer are traded here.

But the CME has other, more esoteric products. The exchange offers an E-mini S&P 500 contract to trade the Standard & Poor's 500 Index on stocks. If the NASDAQ is more your style, they offer the E-mini NASDAQ 100 that trades a futures contract on that popular index.

Even Eurodollar futures are traded here. But the most unlikely contract has to be the Weather derivative - a futures contract that speculates on weather around the globe during different seasons.

New York Mercantile Exchange (NYMEX)

NYMEX is the acronym for the New York Mercantile Exchange. Among the oldest in the U.S., they offer commodity and futures trading on a wide variety of petroleum and metals products, each with a distinct exchange abbreviation. Brent and mini-crude (CL, WS), Natural Gas (NG), Gasoline (HU), Heating Oil (HO, BH), and others.

Gold (GC), Silver (SI), Copper (HG) and Aluminum (AL) are offered, too. Note that the commodity abbreviations do not match the common chemical element abbreviations. Futures contracts are listed second and have their own abbreviation.

New York Board of Trade (NYBOT)

Another major exchange housed in New York is the NYBOT (New York Board of Trade). New York's original futures exchange, it offers contracts on cocoa, coffee, sugar, FCOJ (frozen concentrate of orange juice), cotton and other agricultural products. It also trades non-physical items, such as currency pairs, the U.S. Dollar Index, the famed NYSE Composite and more. The NYBOT offers live price info and will even feed a Blackberry device.

London Liffe

But the U.S. has no monopoly on commodity and futures exchanges. One of the world's most active is in London: Liffe. Formerly known as the London Fox (London Futures and Options Exchange), it's now merged with euronext. The exchange trades cocoa, sugar, coffee, wheat, barley, potatoes and other agricultural products.

London Metal Exchange (LME)

Not far away is the historic London Metal Exchange, one of the grandfathers of precious metals trading. Copper, lead, aluminum, and several others are traded here. The exchange even trades plastics.

Central Japan Commodity Exchange (C-Com)

Japan, too, has a major exchange, the Central Japan Commodity Exchange, based in Nagoya, Japan. Formed in 1996 from the merger of three other major exchanges, commodities range from eggs to gasoline and kerosene to ferrous scrap.

Recommended Reading

The New York Stock Exchange - Print (24x18)

Exchange Traded Derivatives

Essentials of Financial Risk Management

New York Stock Exchange
Print (24x18)

Exchange Traded

Essentials of Financial
Risk Management


Browse Categories:
Stock Trading
Forex Trading
Commodity Trading
Options Trading
Day Trading
Technical Analysis
Real Estate Investing
Bonds Investing
Finance / Economics
For Your Trading Room
Online Forex Trading Tips
  Currency Trading  
  Introduction to Forex  
  Reading Forex Quotes  
  Understanding Pips  
  Types of Forex Orders  
  Understanding Margin and Leverage  
  Avoiding Failure in the Forex Market  
  Calculating Profit and Loss  
  Choosing a Forex Broker  
  Forex Trading vs The Stock Market  
  Forex - Fundamental Analysis  
  Technical Analysis  
  Fundamental vs Technical Analysis  
  Traits of Successful Forex Traders  
  More About Forex Trading...  
Online Commodity Trading Tips

Commodity Trading

  Intro to Commodities - Part 1  
  Intro to Commodities - Part 2  
  Commodity Exchanges  
  Financial Indexes  
  Commodity Types  
  Reading Commodity Prices  
  Commodities - Margins  
  Commodities - Leverage  
  Trading Coffee  
  Trading Silver  
  Trading Uranium  
  Trading Soybean  
  Trading Oil  
  More About Commodities Trading...  
Online Options Trading Tips

Online Options Trading

  Options 101  
  Calls and Puts  
  Options Trading 101  
  Options Trading 102  
  Options - Risk Management  
  How To Read Options Listings  
  Trading Strategies - Basic Concepts  
  Trading Strategies - Profit and Risk  
  The Greeks - Part 1  
  The Greeks - Part 2  
  Values and Prices - Part 1  
  Values and Prices - Part 2  
  More About Options Trading...  
Real Estate Investing
  Real Estate Investing  
  Getting Started in Real Estate  
  Questions To Ask Before Investing  
  Real Estate - Your First Time  
  Finding and Evaluating Property  
  Inspections Save You Money  
  Cheap Repairs, Big Profits  
  Keep Your Cash For A Rainy Day  
  Insurance and Risk Management  
  Managing Risk - Part 1  
  Managing Risk - Part 2  
  More About Real Estate Investing...