Chicago Mercantile Exchange - CME

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DEFINITION of 'Chicago Mercantile Exchange - CME'

The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and a small amount on agricultural products.

BREAKING DOWN 'Chicago Mercantile Exchange - CME'

Founded in 1898 as a not-for-profit corporation, the CME was called the Chicago Butter and Egg Board until 1919. In November 2000, CME became the first U.S. financial exchange to demutualize and become a shareholder-owned corporation.

The trading of futures and options on futures provides a way to protect against and profit from price changes in financial instruments and physical commodities.

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RELATED FAQS
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    The default risk for a derivative is the risk that a counterparty to a financial derivative contract will default on its ... Read Full Answer >>
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    The fair value is the theoretical calculation of how a futures stock index contract should be valued considering the current ... Read Full Answer >>
  3. What are the most popular assets for investors?

    Popular asset classes for investors includes savings accounts and bonds, marketable bonds, certificates of deposit, equity-based ... Read Full Answer >>
  4. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Full Answer >>
  5. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
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