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. Commodity Futures Trading Commission ...

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

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

    A trading platform where all buyers and sellers transact with ...
  4. Exempt Commodity

    Any commodity other than an excluded or agricultural commodity. ...
  5. Qualified Eligible Participant ...

    An individual who meets requirements to trade in different investment ...
  6. Eligible Contract Participant

    A group or individual allowed to engage in financial transactions ...
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  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  5. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  6. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>

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