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All You Need to Know About Futures Trading in US: Exchanges and Offerings

By a wide margin, the single greatest benefit of futures is the diversity of alternatives. Products facing a multitude of asset classes stand at the ready to help market participants achieve a variety of goals. When futures trading US markets, there are two primary venues: the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).

The Chicago Mercantile Exchange (CME)

Headquartered at 20 South Wacker Drive, Chicago, Illinois, the CME is the largest derivatives marketplace in the world. Founded in 1898 as the Chicago Butter and Egg Board, the CME is currently property of the CME Group. It exists as a combination of four American exchanges: the CME, Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), and Commodity Exchange Inc. (COMEX).

Featuring products facing all major asset classes, the CME offers second-to-none market access via the CME Globex online platform. If you’re contemplating futures trading US exchanges, then the CME is a must-visit destination. Here are its featured products readily available for active trade:

Product Symbol Asset Class
E-mini S&P 500 ES Equities Index
E-mini NASDAQ 100 NQ Equities Index
E-mini DOW YM Equities Index
Henry Hub Natural Gas NG Energy
WTI Crude Oil CL Energy
Euro FX 6E Currency
10-Year Note ZN Interest Rate
5-Year Note ZF Interest Rate
Gold GC Gold

Throughout the CME’s storied history, it has been on the forefront of innovative derivatives product offerings. From weather-based futures contracts to the new Micro E-minis, the CME offers customers an unparalleled diversity of trading options.

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The Chicago Board Options Exchange (CBOE)

Founded in 1973, the CBOE was the first marketplace offering the trade of standardized options contracts. Since its inception, innovation has been a key part of the CBOE’s mantra. A pioneer in computerized trading, as well as in put option offerings, the exchange has functioned as a global leader in the trade of options and specialized derivatives products.

In 2017, the CBOE extended its reach as a primary venue for futures trading US derivatives. Through the acquisition of Bats Global Markets, the CBOE became a world-class exchange holding company. Here are a few of the CBOE’s most popular products:

 

Product Symbol Asset Class
Volatility Index VIX Index
S&P 500 Options SPX Equity Index
Dow Jones Options DJX Equity Index
Russell 2000 Options RUT Equity Index

In contrast to the CME’s broad array of offerings, the CBOE provides clients a specialized suite of products. By far, the most popular is the Volatility Index, known in trading circles simply as the “VIX.” The VIX is based upon stock and futures trading US market fluctuations pertaining to the S&P 500.

Retail traders and institutional investors use the VIX in a variety of unique ways. Existing as both a premier hedging tool and a prime target for speculative enterprise, it attracts participants from around the globe. In either context, the VIX is widely viewed as being the benchmark measure of U.S. equities market volatility.

Are You Interested in Futures Trading US Exchanges?

If you’re an aspiring futures trader and interested in trading American exchanges, then the CME and CBOE are worth a look. Featuring dynamic pricing volatility and robust liquidity, these two exchanges represent the ultimate in U.S.-based futures trading.

For more information on these markets and products, check out the resources available at Daniels Trading. Our tools — which include a comprehensive online educational suite, the DanielsAG mobile app, and complimentary one-on-one consultations — make Daniels Trading an essential asset for your venture into the marketplace.

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Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or [email protected] and mention .

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the “risk disclosure” webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

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