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. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  6. Futures Exchange

    Traditionally, a term referring to a central marketplace where ...
Related Articles
  1. Options & Futures

    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. Options & Futures

    Commodities: Platinum

    By Noble DrakolnPlatinum was a part of Native American culture before Columbus arrived in the New World. In 1557, Julius Caesar Scaliger writes about the metal, referencing the platinum mines ...
  3. Options & Futures

    Commodities: Copper

    By Noble DrakolnCopper is a metal that has been known all around the world since ancient times. From West Africa to China to Europe to Central and South America, copper has been mined and worked ...
  4. Options & Futures

    Commodities: Gold

    By Noble DrakolnFrom the time of the Egyptian Pharaohs to the voyage of Columbus to the New World and beyond, gold has been revered as a symbol of wealth and prosperity. Gold has also been used ...
  5. Options & Futures

    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. Options & Futures

    Gold Put Options Hedge Against Volatility

    People are often encouraged to own gold as a hedge against inflation or to diversify their investments. One way to mitigate the volatility of owning gold is to use put options as part of your ...
  7. Options & Futures

    All About Liquid Commodities

    You might hear 'liquid commodities' and think of an auction, but they're actually a high-volume, fast paced financial product suitable for day traders.
  8. Fundamental Analysis

    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.
  9. Options & Futures

    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 ...
  10. Investing News

    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.
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. 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 >>
  3. 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 >>
  4. What other precious metals are there beyond gold and silver?

    Discover the other, lesser-known precious metals such as platinum and palladium, which are more tied to the industrial economy ... Read Answer >>
  5. 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 >>
  6. What are the most common ETFs that track the metals and mining sector?

    Discover investment opportunities with ETFs that invest in physical precious and base metals and miners such as gold, silver, ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center