The CME stands for the Chicago Mercantile Exchange, a global derivatives and futures exchange recognised as one of the largest and most influential in the world. It offers a wide range of financial products, including futures and options contracts for equities, commodities, currencies, interest rates, and more. The CME is regulated by the Commodities Futures Trading Commission (CFTC) in the United States.
The CME was founded in 1898. Today, it operates as a marketplace where buyers and sellers can trade a variety of financial products with standardised terms, such as delivery dates and contract sizes. Its electronic platform, CME Globex, allows traders to place trades 24 hours a day across time zones.
Many traders like to trade futures contracts for commodities on the CME. Some examples include crude oil, natural gas, wheat, gold, and silver.
Let’s say a trader believes that the price of wheat will increase in the future. They can buy a wheat futures contract on the CME. This contract represents an agreement to buy a specific quantity of wheat on a predetermined date at a predetermined price. If the price of wheat increases before the contract expires, the trader can sell the contract at a higher price and profit from the price difference. However, if the price of wheat decreases, the trader would incur a loss.
ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.