History of Futures Trading
The trading of commodities has begun centuries ago, with the first signs of civilization. The modern type of futures trading marked its presence in 18th, according to some 17th, century in Japan and in Holland or grains such as rice and wheat.
The organized way of futures trading, with well formed contracts, started in Chicago, USA in early 1840s. The first centralized futures trading market, the Board of Trade of the City of Chicago, was established in 1948. This board has standardized the terms, delivery time and the quantity per contract of the futures. The product traded, until 1970s, through futures markets include agricultural commodities (wheat, rice, oats, etc), metals (silver, gold, etc) and energy products (crude oil, natural gas, etc).
The Chicago Mercantile Exchange (CME), established in 1919, introduced financial futures for the first time in 1971 with the abolition of currency gold standards. Now financial futures are the most traded type of all futures and it also paved the path for other futures types like interest futures and index futures. In 1987, again CME, introduced electronic trading for futures, which have revolutionized the futures trading practice with the global access.
The organized way of futures trading, with well formed contracts, started in Chicago, USA in early 1840s. The first centralized futures trading market, the Board of Trade of the City of Chicago, was established in 1948. This board has standardized the terms, delivery time and the quantity per contract of the futures. The product traded, until 1970s, through futures markets include agricultural commodities (wheat, rice, oats, etc), metals (silver, gold, etc) and energy products (crude oil, natural gas, etc).
The Chicago Mercantile Exchange (CME), established in 1919, introduced financial futures for the first time in 1971 with the abolition of currency gold standards. Now financial futures are the most traded type of all futures and it also paved the path for other futures types like interest futures and index futures. In 1987, again CME, introduced electronic trading for futures, which have revolutionized the futures trading practice with the global access.
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