Futures Trading Exchanges: CBOT, CME and NYMEX
Most of the people who invest in stocks, only know about the New York Stock
Exchange (NYSE) or the NASDAQ over the counter market. Futures trading
is one of the ways to grow your wealth.
There are many dozens of futures contracts that you can trade ranging from
crude oil, gold, ethanol, heating, gasoline, silver, copper, wheat, corn, coffee,
soybeans, pork bellies, cattle, interest rates, currencies and others.
If you want to profit from commodities than futures trading is the best and
direct method of getting access to the commodity market. There are several
active futures trading exchanges in the US.
Three of the world's largest futures exchanges are located in Chicago.
The number one is the CME (Chicago Mercantile Exchange). The futures
contracts that get traded on CME include among others stock index futures,
foreign currencies, interest rates, commodities, environmental futures and
others. Futures trading is no doubt risky but if you learn it, it can be highly
profitable. As said before, Ricard Dennis and his turtles used to trade the
most liquid contracts in the market.
Now as said before, commodities is an important asset class. CME provides
you with the opportunity to trade many commodity contracts. The
commodities futures that get traded on CME include cattle, butter, limber,
pork bellies, Goldman Sachs Commodities Index, live cattle, milk, lean hogs,
feeder and fertilizer.
Major stock index futures contracts like the S&P 500, S&P 500 Midcap, S&P
Small Cap 600, NASDAQ Composite, NASDAQ 100, Russell 2000 and their
corresponding E-Mini contracts also get traded on CME.
Other important futures contracts that get traded on CME include single stock
futures, futures on ETFs and futures on Japanese Nikkei 225 Index. CME
group also has the GLOBEX Electronic Trading Platform that allows
electronic trading of futures contract almost around the clock.
The second most important futures exchange is the CBOT (Chicago Board of
Trade).The futures contracts that are available on CBOT include agricultural
futures like the soybeans, ethanol, rice, corn, wheat and others. Mini
contracts on corn, soybeans and wheat are also available for trading on
Interest rate related futures contracts that get traded on CBOT include
Treasury Bonds, FED Funds, spreads, municipal bonds, German debt and
swaps. Dow Jones Industrial Average (DJIA) futures popularly known as Dow
futures and its E-Mini version plus gold and silver futures and their mini
versions also gets traded on CBOT.
Now the best place to trade crude oil, natural gas, gasoline as as well as a
host of other energy futures in the NYMEX (New York Mercantile
Exchange).This is infact the global hub for energy trading and offers futures
contracts on unleaded gasoline, heating oil, electricity, light sweet crude,
natural gas, propane and coal.
Futures contract on precious metals like gold, silver, platinum and palladium
also get traded on NYMEX. Futures contracts on metals like copper and
aluminum also are available on NYMEX.