Chicago Board of Trade
Commodity exchange in Chicago, Illinois, United States
| Chicago Board of Trade | ||
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| Formation | 1848 | |
| Type | Commodity exchange | |
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The Chicago Board of Trade (CBOT) is a commodity exchange established in 1848 in Chicago, Illinois. It is one of the world's oldest futures and options exchanges. The CBOT originally traded only agricultural commodities such as wheat, corn, and soybeans, but it has since expanded to include a wide range of financial instruments.
History[edit | edit source]
The CBOT was founded in 1848 to provide a centralized marketplace for buyers and sellers of commodities. The exchange was created to bring order to the chaotic grain markets of the time. The first trades were conducted in a small room above a flour store on South Water Street in Chicago.
In 1865, the CBOT introduced the first standardized futures contract, which allowed for the trading of contracts for future delivery of commodities. This innovation helped to stabilize prices and reduce the risk for both buyers and sellers.
Merger with CME Group[edit | edit source]
In 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form the CME Group, the world's largest and most diverse derivatives marketplace. The merger allowed for the integration of trading platforms and the expansion of product offerings.
Trading and Products[edit | edit source]
The CBOT offers a wide range of products, including:
- Agricultural commodities: corn, soybeans, wheat, oats, rice, and ethanol
- Financial instruments: U.S. Treasury bonds, interest rate futures, and stock index futures
- Metals: gold, silver, and copper
Trading Platforms[edit | edit source]
The CBOT operates both electronic and open outcry trading platforms. The electronic trading platform, known as CME Globex, allows for 24-hour trading and greater accessibility for traders around the world. The open outcry system, conducted on the trading floor, is a traditional method where traders use hand signals and verbal communication to execute trades.
Related Pages[edit | edit source]
- Chicago Mercantile Exchange
- CME Group
- Commodity Futures Trading Commission
- Futures contract
- Options contract
- Derivatives market
See Also[edit | edit source]
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