Meaning CHICAGO MERCANTILE EXCHANGE (CME): A not-for-profit corporation owned by its members. Its primary functions are to provide a location for trading futures and options, to collect and disseminate market information, to maintain a clearing mechanism, and to enforce trading rules. Applies to derivative products. Primary place futures (O.T.C. 250 industrial stock price index, S; P 100 and 500 index) and futures options (S;P 500 stock index) are traded
More terms such as Chicago Mercantile Exchange (CME) in Dictionary C.
- Definition Carry:
- Examples Related: Net financing cost chicago mercantile exchange (cme) definition.
- Definition Custodial Fees:
- Examples Fees charged by an institution that holds securities in safekeeping for an investor chicago mercantile exchange (cme) explain.
- Definition Convex:
- Examples Curved, as in the shape of the outsid of a circle. Usually referring to the price/required yield relationship for option-free bonds chicago mercantile exchange (cme) what is.
- Definition Closing Transaction:
- Examples Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction chicago mercantile exchange (cme) meaning.
- Definition Convergence:
- Examples price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is higher because of time value. But as the contract nears expiration, and time value chicago mercantile exchange (cme) abbreviation.
