New York Mercantile Exchange - NYMEX

DEFINITION of 'New York Mercantile Exchange - NYMEX'

The world's largest physical commodity futures exchange. Trading is conducted through two divisions: the NYMEX Division, which is home to the energy, platinum and palladium markets, and the COMEX Division, where metals like gold, silver and copper and the FTSE 100 index options are traded. The NYMEX uses an outcry trading system during the day and an electronic trading system after hours.

You'll hear the NYMEX referred to as "The Merc".

BREAKING DOWN 'New York Mercantile Exchange - NYMEX'

In 1872, a group of dairy merchants founded "The Butter and Cheese Exchange of New York", and in 1994, the NYMEX merged with the COMEX (commodity exchange). Futures and options on energy and precious metals have become great tools when companies try to manage risk by hedging their positions. The ease with which these instruments are traded is vital to hedging activities and gauging future prices, making the NYMEX a vital part of the trading and hedging worlds.

RELATED TERMS
  1. COMEX

    The primary market for trading metals such as gold, silver, copper ...
  2. Platinum

    A chemical element, precious metal and commodity used primarily ...
  3. Division Of Investment Management

    The Division of Investment Management is a branch of the U.S. ...
  4. Division Of Corporate Finance

    The Division of Corporate Finance is a branch of the U.S. Securities ...
  5. Base Metals

    Metals that oxidize, tarnish or corrode relatively easily when ...
  6. Futures Exchange

    Traditionally, a term referring to a central marketplace where ...
Related Articles
  1. Markets

    Commodities: Silver

    By Noble DrakolnSilver is the whitest, most malleable and most conductive metal available. It has enjoyed a variety of uses throughout history, most notably as a form of money and jewelry. The ...
  2. Trading

    A Beginner's Guide To Precious Metals

    All that glitters isn't gold. Find out how to get started on your treasure hunt.
  3. ETFs & Mutual Funds

    Stillwater Mining Or North American Palladium?

    Looking for a pure play platinum metals producer? There's really only one option.
  4. Markets

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  5. Markets

    How To Lock In Low Oil & Gas Prices

    We provide a quick overview of how companies can manage the risk of adverse moves in commodity prices by hedging in the futures market.
  6. ETFs & Mutual Funds

    2 ETFs More Precious than Gold

    In all the furor over gold, investors are overlooking a great opportunity to get in on platinum group metals, a group that are in greater demand and usually come at a higher premium than the ...
  7. Markets

    Performance Review: Commodities in 2015

    Learn how commodities took a big hit in 2015 with a huge variance in performances. Discover how the major commodities performed over the year.
  8. Trading

    An Overview Of Commodities Trading

    Commodities markets, both historically and in modern times, have had tremendous economic impact on nations and people. Investing in commodities can quickly degenerate into gambling or speculation ...
  9. Markets

    Should You Add Metals To Your Portfolio? (SLV, GLD)

    This study examines how various metals have performed over the last 10+ years, with analysis of whether you should consider investing in metals.
  10. ETFs & Mutual Funds

    The Top 3 ETFs For Investing in Platinum (PPLT, PTM)

    Discover some of the most popular exchange-traded funds, or ETFs, that investors utilize to obtain exposure to the platinum market.
RELATED FAQS
  1. What types of futures contracts are typically sold on an exchange?

    Explore the wide variety of available futures contracts traded on exchanges, which range from agricultural commodities to ... Read Answer >>
  2. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ... Read Answer >>
  3. How can electricity be traded as a commodity by an individual investor?

    Learn the characteristics unique to electricity trading as a commodity and how investors can trade electricity futures on ... Read Answer >>
  4. How is minimum transfer price calculated?

    Discover how to calculate the minimum transfer price for goods and materials that have been transferred between multiple ... Read Answer >>
  5. 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 Answer >>
  6. What's the difference between the Chicago Board of Trade (CBOT) and the Chicago Mercantile ...

    Read about the CBOT and Mercantile exchanges; both are futures exchanges that offer different futures contracts and specialize ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center