Commodity Exchange Act - CEA


DEFINITION of 'Commodity Exchange Act - CEA'

An act passed in 1936 by the U.S. Government that provides federal regulation of all futures trading activities. This act replaced the Grain Futures Act of 1922.

BREAKING DOWN 'Commodity Exchange Act - CEA'

The Commodity Futures Trading Commission (CFTC) was created as a result of the CEA to monitor the U.S. futures and options markets.

  1. Option

    A financial derivative that represents a contract sold by one ...
  2. Futures

    A financial contract obligating the buyer to purchase an asset ...
  3. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  5. One To Many

    A trading platform where all buyers and sellers transact with ...
  6. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
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  1. Do hedge funds invest in commodities?

    There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
  2. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
  3. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  4. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
  5. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
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    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>

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