A History Of Trading
Keywords:
The first recorded instance of futures trading occurred with rice in 17th Century Japan. Some evidence would show a possibility that there was also trading of rice futures in China as long as 6,000 years ago.
The problem of maintaining a year-round supply of seasonal crops and products such as olive oil led to a system that evolved into the Futures Trading Markets of today. In Japan, merchants stored rice in warehouses for future use. To raise cash, warehouse owners sold receipts against the stored rice. These were known as “rice tickets.” Eventually, these rice tickets became accepted as a kind of general commercial currency. Rules came into being to standardize the trading in rice tickets. Over time, modern futures trading grew out of these rules.
In the middle of the 19th Century futures trading began in the grain markets of the United States. The Chicago Board of Trade (CBOT) was established in 1848. The New York Coffee, Cotton and Produce Exchanges were born in the 1870s and 1880s. Today there are ten commodity exchanges in the United States. The largest are the Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and the New York Coffee, Sugar and Cocoa Exchange.
Worldwide there are major futures trading exchanges in more than twenty countries among them Australia, New Zealand, Canada, England, France, Singapore and Japan. The products traded range from agricultural staples like Corn and Wheat to Red Beans and Rubber traded in Japan. Also included, are products as seemingly obscure as Pork Bellies up to our now infamous Petroleum Futures.
The biggest increase in futures trading activity occurred in the 1970s when futures on financial instruments, (FOREX) started trading in Chicago. Foreign currencies such as the Swiss Franc and the Japanese Yen were first. Also developed as futures marketable were interest rate instruments such as United States Treasury Bonds and T-Bills. In the 1980s futures began trading on stock market indexes such as the S&P 500. Other Derivatives followed.
The world wide exchanges are constantly looking for new products on which to trade futures. Very few of these new markets survive and grow into viable trading vehicles. A few examples of less than successful markets attempted in recent years are Tiger Shrimp and Cheddar Cheese.
Futures trading is regulated by the Department of Agriculture in an agency called the Commodity Futures Trading Commission. It regulates the futures exchanges, brokerage firms, money managers and commodity advisors.
Copyright © C. R. Ellsworth 2006
C. R. Ellsworth is retired from Corporate America and living in the ‘Great North Woods’. He’s been involved in On-Line Marketing since 2000.
i-work-4-u.com
i-work-4-u.com dblsundog.net
Previous Articles Highlighter:
Before Bankruptcy (1)
My Cable system uses a tier system and it is quite a financial jump to go to a higher tier to get 1 or 2 channels. On the other hand they also offer Hi-Speed Internet.
Wireless Home Theatre Systems. The Time Has Come. (2)
Checkit out. I've provided many links to other information sources. Enjoy the Search. C. R. Ellsworth is retired from Corporate America and living in the 'Great North Woods'.
Seven Steps To A Better Photograph Part Two (3)
Digital photo restoration services see this type of photo problem often, particularly when scanning an old negative, taken before flash photography was available. You, on the other hand, have no excuse not to make use of the fill flash technique, and doing so will greatly improve the quality and clarity of your photos.
Moving Tips For San Diego Mortgage Borrowers (4)
Have a first open box with the things you will need most like toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, a nd toothpaste.
Where Using Natural Stone Veneer Gives You The Best Bang For Your Buck (5)
Countertops are one place that this beautiful veneer is perfect for. Since solid slabs of full stone can be so very expensive, the veneer is just as beautiful. The only difference is the thickness.
The Natural Stone Phenomenon Strikes The United States (6)
In the clothes we wear, the foods we eat, and in the things we use to clean and furnish our homes. Natural stone fits the bill perfectly. Not only is it popular for its natural beauty, but for its durability as well.
The Basics Of Selling Prints Online (7)
Unique Art Prints Sell. Those who are using art photos for their books and magazines want something that is unique. They don't want something that can basically be found in a hundred other places.
The Joy And Caution Of Owing A Pocket Bike (8)
The pocket bike you have acquired or obtained is firmly prohibited from being operated on a sidewalk, roadway, or any other part of a highway, or on a bikeway, bicycle path or trail, equestrian trail, hiking or recreational trail, or on public lands open to off highway vehicle use.
Breakthroughs Are Available If You Hold The Right Contest To Get Help From Outside Your Organization (9)
We've all seen breakthroughs, but often don't think about them. Yet those breakthroughs can help us appreciate other potential breakthroughs. For instance, a slow reader takes a course in better reading methods.
How Natural Stone Was Used Through The Ages (10)
As the human race became more civilized, we were still dependant on stones for our homes in many instances. They would be built from rocks or blocks that were carved out of large stone quarries.
Newer Articles Highlighter:
DLP LCD Plasma HDTV It Will Soon Be Time To Choose (1)
If you use one of the Satellite providers you should be in luck. They are transitioning to HDTV as we speak. Ain't Competition Great. HDTV SPECIFICATION The HDTV specification provides for three different types of HDTV, denoted by the number of lines of resolution and the signal type.
Finding Top Multi Level Marketing Company (2)
This link will include your program information that is used to track the number of sales you make. When you recruit others, their links will include information so these sales can be tracked as well so you can earn a commission.
Basic Bookkeeping For Small Business Can Save Money (3)
Cash and Bank Transactions Quite apart from the single entry of sales and purchases is the recording by a business in its books of cash and bank receipts and payments.
Getting A Direct Student Loan (4)
There are several good things that arrive from obtaining direct student loans, one of which includes how simple and easy it is to understand them. The federal government does not make the payments for the loan due until after the educational career of the student is finished and he or she has secure employment.
Creating A Shabby Chic Look (5)
Throw in a Little Color Spice up the bare white walls with a bold painting in red or related colors. The feature wall can be left alone as a background for the white sofa with a quilted throw draped across, or serve as a dramatic setting for framed black and white photographs.
Great Tropical Decorating Ideas (6)
The curtains could be replaced with rattan, sisal or bamboo blinds that tame the strong sunshine and lets it enter in muted shades. Wicker is the furniture of choice, but teak and mahogany or anything that looks similar would do as well.
Easy Guide To The Best Low Cost Health Insurance (7)
Inexpensive health insurance is unquestionably obtainable - if you know where and how to find it. Selecting the appropriate health insurance company could be a hard decision, but the key is to be knowledgeable.
Importance Of Private Label Articles (8)
2. Use private label articles content to create a series of small articles This is especially useful when producing material for an email campaign. A series is by far, one of the more effective ways to create a following with your audience.
Bargain Prices In New Years Shopping (9)
The bargain prices in New Year shopping opportunities might give people the opportunity to get a fresh start by getting rid of old items that they already own. The overstocks of any retailer will generally be lowered to the lowest price possible in an effort to entice bargain hunters to clear the shelves of the items.
How To Calculate The Volatility Of The Spread In Options Trading (10)
The June 70 calls are worth $2.00 at 40 volatility. Thus the spread is worth $1.32 at 40 volatility. Now let's again move the spread price to $1.30, $.02 lower than the value of the spread at 40 volatility.