Futures trading is one of the ways to make money and grow your wealth overtime. Many people only invest in stocks. However, trading futures contracts like copper, wheat, corn, coffee, soybeans, pork bellies, cattle, crude oil, gold, ethanol, heating, gasoline, silver, interest rates, currencies and others can be highly lucrative.
If you want to profit from commodities than futures trading is the best and direct method of getting access to the commodity market. There are several active futures trading exchanges in the US. Three of the world’s largest futures exchanges are located in Chicago.
The largest futures trading exchange in US is Chicago Mercantile Exchange (CME). A large number of futures contracts get traded on CME that includes commodities, stock index futures, foreign currencies, interest rates, environmental futures and others.
The commodities futures that get traded on CME include live cattle, milk, lean hogs, feeder cattle, butter, limber, pork bellies, Goldman Sachs Commodities Index and fertilizer.
Now, one of the ways to trade stock market is to trade stock indexes like the various S&P 500 like the S&P 500 Midcap, Small Cap as well as the Russell 2000 and the NASDAQ 100. CME provides you with the opportunity to trade futures contracts on these stock indexes as well as their mini versions the E-Minis.
GLOBEX is the Electronic Trading Platform owned by the CME Group that allows the electronic trading of these contracts almost 24 hours a day. So you can easily trade almost all these contracts from the comfort of your home electronically using your computer.
The second most important futures exchange is the CBOT ( Chicago Board of Trade).The futures contracts that are available on CBOT include agricultural futures like the soybeans, ethanol, rice, corn, wheat and others. Mini contracts on corn, soybeans and wheat are also available for trading on CBOT.
Interest rate related futures contracts that get traded on CBOT include Treasury Bonds, FED Funds, spreads, municipal bonds, German debt and swaps. Dow Jones Industrial Average (DJIA) futures popularly known as Dow futures and its E-Mini version plus gold and silver futures and their mini versions also gets traded on CBOT.
Now the best place to trade crude oil, natural gas, gasoline as as well as a host of other energy futures in the NYMEX (New York Mercantile Exchange).This is infact the global hub for energy trading and offers futures contracts on unleaded gasoline, heating oil, electricity, light sweet crude, natural gas, propane and coal.
Futures contract on precious metals like gold, silver, platinum and palladium also get traded on NYMEX. Futures contracts on metals like copper and aluminum also are available on NYMEX.
Source by Ahmad Hassam