Investor Glossary-cbotInvestor Glossary-cbotInvestor Glossary-cbotInvestor Glossary-cbotInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

CBOT

The HTML to link to this page
 

The CBOT, or Chicago Board of Trade, is the world's oldest exchange for trading commodity futures and options. The CBOT was established in 1848 to provide commodities buyers and sellers with a centralized location to negotiate forward contracts. In 1865, the CBOT listed the first exchange-traded derivative in the US. Actually a standardized forward contract, the CBOT called it a futures contract. Backed by the CBOT, the futures contract was introduced in response to the problem of credit risk inherent in private forward agreements. In the late 1890s the Chicago Butter and Egg Board was spun off from the CBOT, eventually becoming the Chicago Mercantile Exchange. The CME now handles all clearing for CBOT contracts. Today, the CBOT trades contracts on precious metals, interest rates, and the Dow, in addition to the agricultural products of its roots. For the first 150 years of its history, the CBOT conducted business by open outcry in trading pits, but in recent years the CBOT has been has been frequently improving and upgrading its electronic trading systems.



Rate this CBOT definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use