Saturday, May 7, 2011

The Commodity Exchanges Trading Platform

The trading of commodities is done entirely at commodity exchanges. A commodity exchange is an entity which is usually an incorporated non-profit set-up, that determines and enforces rules, regulations, and procedures for investment trading takes place.

The world's famous top 3 commodity exchange trading platforms are:

1. NYMEX, New York Mercantile Exchange
Founded in 1872, NYMEX is the world's largest physical commodity futures exchange for energy and precious metals. The prices quoted for transactions on the exchange are the basis for prices that people pay for physical commodities throughout the world.

2. CBOT, Chicago Board of Trade
CBOT is established in 1848 and it is the world's most oldest commodity exchange trading platform for trading futures and options. CBOT trades more than 50 different futures and options in agricultural commodities, financial derivatives based on U.S. Government bonds and notes, mortgage-backed certificates, and more recently, South American Ethanol futures.

3. LME, The London Metal Exchange
Founded in 1877, LME is the world's largest market in cash and futures for non-ferrous metals, including aluminium, copper, nickel, tin, zinc and lead. In 2005, the LME exchange lauched the world's first futures contracts for plastics.


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