Futures Exchanges – Knowing Where To Do Business
Good for you! You’ve been reading, you’ve put together a trading rules to lay the foundation for your futures trading plan and you’ve even been paper trading to prove your trading plan. Now you are ready to learn more about where you will be doing your business; it’s time to talk about the futures exchanges.
General Futures Exchange Information
As you know at this point, you will not actually do business with the futures exchanges listed below. You will work with your broker who will take your futures orders to the exchange floor for you. Since you have been paper trading, you probably have already established an account for commodities trading so we won’t go over that again. While there are futures exchanges throughout the world, we will focus on the ones in the US. The markets we will outline are in Minneapolis, Kansas City, New York and Chicago.
History of Futures Exchanges in the US
The modern futures trading began in Chicago, IL in the early 1800s. Chicago, with its location at the base of the Great Lakes, is close to the farm of the U.S. Midwest which made it a natural center for transportation, distribution and trading of agricultural produce. Gluts and shortages of these products caused extreme changes in price. An exchange was needed that would bring together a market to find potential buyers and sellers of a commodity instead of making people bear the burden of finding a buyer or seller. In 1848, the Chicago Board of Trade (CBOT), the world’s first futures market, or futures exchange, was formed. Trading was originally in futures and the first contract was written on March 13, 1851.
Futures Exchanges
Different futures exchanges trade different commodities. In addition, each future exchange accepts different futures orders. Since not every exchange allows every order it is necessary to talk with you broker about which orders are permitted in the markets you trade. The following is a list of the major commodity exchanges, their commodities, and the orders that they accept:
Chicago Board of Trade
Location: Chicago, IL
Commodities
o Corn
o Oats
o Soybeans
o Soybean Oil
o Soybean Meal
o T-Bonds
o T-Notes
o Muni Bonds
o 5 Year Notes
o 2 Year Notes
o DJIA Index
Acceptable orders: Market, Market on Close, Limit, Stop, and Fill or Kill Orders
Chicago Mercantile Exchange
Location: Chicago, IL
Commodities
o Live Cattle
o Lean Hogs
o Lumber
o Feeder Cattle
o Pork Bellies
Acceptable orders: All futures orders are acceptable.
Index and Option Market
Commodities
o S&P 500
o Mid-cap 400
o NASDAQ 100
Acceptable orders: All futures orders are acceptable.
International Monetary Exchange
Location: Chicago, IL
Commodities
o T-Bills
o Euro Dollars
o Canadian Dollar
o Euro Currency
o Australian Dollar
o Mexican Peso
o Euro Yen
o Japanese Yen
o British Pound
o Swiss Franc
Acceptable orders: All futures orders are acceptable.
New York Comex
Location: New York, NY
Commodities
o Copper
Acceptable orders: For Copper only, acceptable are Market, Market on Close, Limit, Stop, and Fill or Kill.
Commodities
o Gold
o Silver
Acceptable orders: For Gold and Silver, acceptable are Market, Market on Close, Limit, Stop, and Fill or Kill. Stop Limits are acceptable only on a not-held basis.
New York Cotton Exchange
Location: New York, NY
Commodities
o Cotton
o Orange Juice
o Dollar Index
Acceptable orders: Market, Market on Close, Limit, Stop, and Fill or Kill.
New York Coffee, Sugar & Cocoa Exchange
Location: New York, NY
Commodities
o Coffee
o Sugar
o Cocoa
Acceptable orders: All futures orders are acceptable.
New York Mercantile Exchange
Location: New York, NY
Commodities
o Unleaded Gasoline
o Platinum
o Palladium
o Heating Oil
o Crude Oil Natural Gas
Acceptable orders: All futures orders are acceptable.
New York Futures Exchange
Location: New York, NY
Commodities
o New York Stock Exchange Index
o CRB Index
Acceptable orders: All futures orders are acceptable.
Kansas City Board of Trade
Location: Kansas City, MO
Commodities
o Kansas City Value Line
o Kansas City Mini Value Line
Acceptable orders: All futures orders are acceptable.
o Kansas City Wheat
Acceptable orders: Market, Market on Close, Limit, Stop and Fill or Kill.
Minneapolis Board of Trade
Location: Minneapolis, MN
Commodities
o Minneapolis Wheat
o Minneapolis White Wheat
Acceptable orders: All futures orders are acceptable.
Author: Stephen Bigalow
Article Source: EzineArticles.com
Provided by: Duty tariff
Futures Exchanges – A Wealth Of Opportunities
Futures trading has the potential to be both exciting and profitable. The key to success is learning the details involved. A basis for understanding futures is to knowing the futures exchanges or places where futures are traded. The futures exchanges are located in various locations throughout the country; they have different commodities trading options at each location and the rules vary as well.
General Futures Exchange Information
As you may know, you will not actually do business with the futures exchanges listed below. You will place trades with your broker who will take your orders to the futures exchange floor for you. If you have been paper trading options or futures, you likely already have an account for commodities trading so you are ready to start. If not, you should select a broker and even consider paper trading for a while. Paper trading is the act of creating a fictitious account that trades just like a real one; this is an excellent way to learn about commodity trading. There are futures exchanges throughout the world but lets focus on the ones in the US. The futures exchanges below are in Minneapolis, Kansas City, New York and Chicago.
Futures Exchanges
Like the stock market, different futures exchanges trade different commodities. In addition, each futures exchange accepts different market orders. Since not every futures exchange permits every type of order it is necessary to talk with your broker about which orders are permitted where you are trading. The following is a list of the major futures exchanges, their commodities, and the orders that they accept:
Kansas City Board of Trade
The Kansas City Board of Trade is located in Kansas City, MO. This market accepts the following commodities: Kansas City Value Line and Kansas City Mini Value Line. The Mercantile accepts all types of futures orders. In addition, the Board of Trade accepts Kansas City Wheat with market, market on close, limit, stop and fill or kill trades.
Minneapolis Board of Trade
Located in Minneapolis, MN, the Minneapolis Board of Trade accepts the following commodities: Minneapolis Wheat and Minneapolis White Wheat. All futures orders are acceptable at this exchange.
Chicago Board of Trade
Located in Chicago, IL, the Chicago Board of Trade deals with these commodities: wheat, corn futures, oats, soybeans, soybean oil, soybean meal, T-Bonds, T-Notes, municipal bonds, 5-year Notes, 2-year Notes and DJIA Index. Acceptable orders here are: market, market on close, limit, stop, and fill or kill orders.
Chicago Mercantile Exchange
Also located Chicago, IL, the Chicago Mercantile Exchange trades live cattle, lean hogs, lumber, feeder cattle and pork bellies. The Mercantile accepts all types of futures orders.
International Monetary Exchange
Located in Chicago, IL, the Monetary Exchange trades T-Bills as well as trading FOREX; Euro dollars, Canadian dollars, Euro currency, Australian dollars, Mexican pesos, Euro yen, Japanese yen, British pounds and Swiss francs. The Monetary Exchanges accepts all futures orders.
New York Comex
Located in New York, NY, Comex accepts market, market on close, limit, stop and fill or kill orders for copper trading. In addition, Comex accepts market, market on close, limit, stop and fill or kill orders for gold and silver trading. Stop limits are only allowed on a not-held basis.
New York Cotton Exchange
Located in New York, NY, the New York Cotton Exchange trades cotton, orange juice, dollar index. The Exchange accepts market, market on close, limit, stop and fill or kill orders.
New York Coffee, Sugar & Cocoa Exchange
This market is located in New York, NY and trades coffee, sugar and cocoa. All types of futures and options contracts are accepted here.
New York Mercantile Exchange
The New York Mercantile Exchange is located in New York, NY. This market accepts the following commodities: unleaded gasoline, platinum, palladium, heating oil, crude oil futures and natural gas. The Mercantile accepts all types of futures orders.
New York Futures Exchange
The New York Mercantile Exchange is located in New York, NY. This futures market accepts the following commodities: New York Stock Exchange Index and the CRB Index. The Mercantile accepts all types of futures orders.
Conclusion
For those wanting to become involved in futures trading, there is a wealth of opportunities. Whether you want to start trading FOREX or coffee futures, you can find the correct futures market to do your business. It is wise to discuss your investment philosophy with your broker first and then use your knowledge, your trading plan and a system like Japanese Candlesticks to help you be successful when you head for the futures exchanges.
Author: Stephen Bigalow
Article Source: EzineArticles.com
Provided by: Guest blogger
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