Futures Trading Exchanges
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 largest futures trading exchange in US is Chicago Mercantile Exchange (CME). A large number of futures contracts get traded on CME that includes commodities, stock index futures, foreign currencies, interest rates, environmental futures and others.
The commodities futures that get traded on CME include live cattle, milk, lean hogs, feeder cattle, butter, limber, pork bellies, Goldman Sachs Commodities Index 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). Mini contracts on corn, soybeans and wheat are also available for trading on CBOT. The futures contracts that are available on CBOT include agricultural futures like the soybeans, ethanol, rice, corn, wheat and others.
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.
The next major futures trading exchange is the New York Mercantile Exchange (NYMEX). This is infact the global hub for energy trading and offers futures contracts on light sweet crude, natural gas, unleaded gasoline, heating oil, electricity, propane and coal.
NYMEX also provides you with the opportunity to trade precious metals like the gold, silver, platinum as well as palladium. You can also trade metals like copper and aluminum on NYMEX. Futures trading is something that is not difficult to do once you get the hang of it. In the beginning, you should just paper trade these contracts for a few months!
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