   
|
|
CBOT
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |