Posts Tagged ‘derivatives’

The CME is…

Thursday, June 30th, 2011

The CME is short for the Chicago Mercantile Exchange. The CME is one of the largest derivatives markets in the world, offering a wide range of options, futures, and other products.

A Derivative is…

Wednesday, August 5th, 2009

A derivative is a security that gets its value from another financial asset but has no financial value in and of itself. A share of a company has inherent value in that you actually own a part of the company. However, an option – a derivative that gives you the option to either sell or buy a particular asset by a set date – derives its value from the potential value of the asset. There are many types of derivatives including futures, swaps, and exotic derivatives.