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. Division Of Corporate Finance

    The Division of Corporate Finance is a branch of the U.S. Securities ...
  2. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  3. Base Metals

    Metals that oxidize, tarnish or corrode relatively easily when ...
  4. Long The Basis

    An individual or company that owns or has purchased a commodity ...
  5. Tokyo Commodity Exchange - TOCOM

    The largest marketplace in Japan, and one of the largest marketplaces ...
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on ...
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. Stock Analysis

    Forget Gold, Invest In These Precious Metals

    Silver, platinum and palladium are driven more by their industrial demand than their safe-haven status. The time to buy is now.
  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. Stock Analysis

    Platinum Group Metals Offers A Real Bargain

    While gold and silver remain the go-to precious metals, the growth in platinum and palladium continues unabated.
  5. Options & Futures

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  6. Personal Finance

    The Most Affordable Precious Metals ETFs

    Precious metals ETFs invest in both physical commodities and futures contracts for precious metals.
  7. Stock Analysis

    The Other Metal Superstars

    Gold has captured the spotlight within the commodities world, but investors would do well to consider the entire metal spectrum.
  8. 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 ...
  9. Personal Finance

    Did You Miss The Gold Rush?

    Even if you missed out on gold, there are other shiny ways to play precious metals.
  10. 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.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  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. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center