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Clear Consistent Viable |
| Dynamic Momentum Trading Seminars - Because Trading is Your Business TM |
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Clear Consistent Viable |
| Dynamic Momentum Trading Seminars - Because Trading is Your Business TM |
| Dynamic Momentum Trading™ Seminar Curriculum | ||
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© Brightstone, Inc Read More About Futures: Though the origins of futures trading can be supposedly traced to Ancient Greek or Phoenician times, the history of modern futures trading begins in Chicago, United States in the early 1800s. Chicago is located at the base of the Morgage Great Lakes, close to the farmlands and cattle country of the U.S. Midwest, making it a natural center for transportation, distribution and trading of agricultural produce. Gluts and shortages of these products caused chaotic fluctuations mortgage refinance in price. This led to the development of a market enabling grain merchants, processors, and agriculture companies to trade in "to arrive" or "cash forward" contracts to insulate them from the risk of adverse price change and enable them to hedge. Forward contracts were world savings bank standard at the time, however, most forward contracts weren't honored by both the buyer and the seller. For instance, if the buyer of a corn forward contract had an agreement to buy corn and at delivery time the price of corn was dramatically higher then when the two originally contracted the buyer backed out. Vice versa is also true. In addition, the bank mortgage forward contracts market was very illiquid and an exchange was needed that would bring together a market to find potential buyers and sellers of a commodity instead of making people bear the real estate home values burden of finding a buyer or seller. In 1848, the Chicago Board of Trade (CBOT), mortgage net branch the world's first futures exchange, was formed. Trading was originally in forward contracts; the first contract (on corn) being written on March 13, 1851. In 1865, standardized futures contracts were introduced. The Chicago Produce Exchange was established in 1874, renamed in 1898 the Chicago Mercantile Exchange (CME). In 1972 the International Monetary Market (IMM), a division of the CME, was formed to offer futures contracts in foreign currencies: British pound, Canadian dollar, German mark, Japanese yen, Mexican peso, and Swiss franc. Later in the 1970s saw the California refinance development of the financial futures contracts, which allowed trading in the future value of interest rates. These (in particular the 90-day Eurodollar contract introduced in 1981) had an enormous impact on the development of the interest rate swap market. |