option usuallycosts less to buy or to exercise, and involves a smaller potential loss, but also, asmaller potential profit.When trading options, it is wise to keep in mind some fundamental principles with respect to price behavior:1. The value of the option is directly related to the expected volatility of themarket and the probability that a particular price level will be reachedduring a given time period.2. When trading options on futures, examine closely the price structure (relationships) between futures months. If the more distant months are at ahigher price than the nearby months, a buyer of a put has, everything elseremaining equal, a better probability of a profitable trade. But, of course,everything else is not always equal. Price relationships may remain thesame, but price levels, which are the important element, may change. Thequestion is, will they change during the life of the option?
CALCULATING RETURN ON INVESTMENTIn comparing transactions in the futures market with transactions in the options market, you should compare them on the basis of return on investment (ROI), whichis calculated by dividing the dollar investment into net profit before taxes. Thus,ROI =
Net income before taxesTotal dollar investment
It is important to note that the break-even point on the futures is close to thepurchase price. The futures market price needs to move only a small amount (com291
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mission plus interest on margin) to reach the break-even point. On an option, it hasto move at least the amount of the premium and, if the strike price is above the current level, then it must move the amount of the premium plus the difference betweenthe strike price and the current market level before the break-even price is reached.Figures 27.1 through 27.12 give a pictorial illustration of the profit and losscharacteristics associated with the basic futures and option strategies. As the reader will note, the first two graphs show the virtually unlimited risk associated witha position in futures. The remaining graphs show how the options provide variantsfrom very limited risk to unlimited risk. Of course, the opposite of risk is profit!A little cogitation on these figures and one can quickly see how combiningfutures and options positions can provide very interesting opportunities for developing exactly the risk/reward profile one wants in an investment.
SUMMARYTo summarize, when considering options relative to futures, remember:1. Options provide known and limited risk. Futures do not unless you use stoporders, and then they do only if the stops actually are executed at or closeto the stated level. This is sometimes hard to do if a market is fluctuatingwildly and is locked in to limit moves.2. To obtain this known and limited risk, you pay a premium. Weigh the sizeof the premium against the confidence of using stops and your desire toavoid being whipsawed. The size of this premium will be related to a lotof factors, the most important of which are price volatility, the remaininglife of the option, and the probability that the price will reach the strikeprice before expiration date.3. The value of the option is directly related to the expected volatility of themarket and the probability that a particular price level will be reachedduring a given time period.4. When trading options on futures, examine closely the price structure (relationships) between futures months. If the more distant months are at ahigher price than the nearby months, a buyer of a put has, everything elseremaining equal, a better probability of a profitable trade. But, of course,everything else is not always equal. Price relationships may remain thesame, but price levels, which are the important element, may change. Thequestion is, will they change during the life of the option?5. The break-even point on a futures transaction may be reached with a muchsmaller price move than in the case of an option. The break-even point in292
Strategies for Trading Options
Figures 27.1–27.6
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Figures 27.7–27.12
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Strategies for Trading Options
futures is close to the purchase or sale price. On an option, the break-evenpoint is the amount of the premium plus the difference between the strikeprice and the current market level plus commissions and other costs.6. Trading a futures against an option provides flexibility to an investmentstrategy and allows the holder of the option to make full use of all the“time” paid for when the option was purchased.7. There are advantages to using a put option instead of futures to hedge aprofitable call option and vice versa.8. There are a number of commercial business uses for options, especiallyin developing deferred pricing contracts. Some, but not all of the uses,duplicate the advantages offered by futures hedges contracts.9. Before you open an account and make a trade in options, shop aroundand ask a lot of questions of the dealer and about the particular optiondeal being offered. There is no substitute for self-protection.
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Chapter 28
Historical Development ofCommodity Futures Trading
Mention commodity futures trading to someone not actively engaged in the market and the first and often only reaction you get is that it is a high-risk form offinancial speculation. True, speculation is a major aspect of futures trading as weknow it today, but underlying current speculative activity is a sound economicpurpose that has its roots in ancient times and has evolved slowly over centuries.Trading and marketing practices naturally change with the basic economic needsof people involved in the pricing and handling of goods. Our current trading system did not miraculously appear.If you were to select any single commodity from among those traded todayand trace its market development, you would find it has passed through five distinct states: gift giving, barter, cash (or spot) markets, contract (or forward) markets, and futures (and derivatives) markets.Thus, the establishment of a futures market in a given commodity is onlythe current stage of a natural evolutionary process. It’s a never-ending process thatcould very well lead to an as yet unknown sixth stage in decades ahead.297Copyright 2001 The McGraw-Hill Companies. Click Here for Terms of Use.
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CHARACTERISTICS OF ORGANIZED FUTURES TRADINGAlthough organized futures trading differs significantly and substantially fromother forms of trading, the concept of futurity or deferred performance in transactions is not new or unusual, nor is it the key element in distinguishing futures trading from other forms of trading.Elements of a transaction (pricing, payment, title transfer, and delivery) can bearranged in any order of time sequence. Hence, one can agree today on the price ofa new car, receive the car and title to it two weeks from now, and pay for it six weekslater when the credit card bill arrives. The element of futurity, then, is a necessarythough not sufficient condition for a futures contract. Futurity is not what really distinguishes organized futures trading from any of a number of trading arrangements.Organized futures trading, as it exists in the United States and abroad, maybe distinguished from the widespread trading that involves other elements of futurity in the following respects.1. Futures trading is conducted in an organized fashion, with a common
set of rules governing all the transactions. Although a car dealer may contract to sell an automobile for delivery in three months, this is not futurestrading. This is a customized contract or forward contract between onebuyer and one seller, usually done in accordance with standard trade practice and subject to contract laws in the various localities but not underuniform exchange rules.2. Futures have specific rules governing trading. Most important of these
(which do not apply to most forward dealings) are:a. Trading must occur at one place (the trading pit or ring, via electronicmeans, or in the human mind) within a specified manner. All bids andoffers are thus known to all participants, and all transactions are public knowledge.b. Various anti-competitive practices are forbidden; e.g., no member mayfill or match a customer’s order without first offering it openly in a pit.3. Futures contracts are standardized with respect to size, date, delivery
location, and delivery procedure. Only price is negotiated. In ordinaryforward dealings, or course, any peripheral terms and conditions can benegotiated.4. Futures trading is impersonal. The exchange clearinghouse becomes a party
to every contract that is negotiated at the exchange—buyer and seller do thenegotiating, but once the deal is struck, each has reciprocal obligations withthe clearinghouse—not with one another. In other forward dealings the parties continue to rely on their personal relationships for fulfillment.298
Historical Development of Commodity Futures Trading
5. Futures contracts are legally cancelled by offset. A member who sells one
July pork belly futures contract incurs an obligation to deliver 36,000pounds of pork bellies to the clearinghouse during July. This he may ultimately do to fulfill his or her contractual obligation. But if he buys a Julycontract prior to the completion of trading in late July, he then has equaland offsetting obligations to the clearinghouse so he is out of the marketwith no obligation.6. The exchange clearinghouse acts as a common guarantor of all contracts. Members of the clearinghouse must maintain minimum amounts
of working capital and must deposit funds to “margin” their outstandingtrades. Exchange members who are not clearing members must affiliatewith clearing members for purposes of verifying and guaranteeing all contracts. No credit is extended in this process; the margin deposit is a performance bond, not a down payment. When delivery occurs in satisfaction of a futures contract, full cash payment is required as the title istransferred. Prior to delivery, no title has been transferred and no credit isextended.The term “futures contract” then is applied to a special type of forward contract bought and sold under the rules of organized exchanges having a clearinghouse.It is a legally binding contract to buy or sell a stipulated amount of carefully specified product or service, during an agreed future period, subject to the rules and regulations of the exchange where the contract is made, and with price determined bypublic auction, electronically, or on the floor of the exchange.When did it all begin? Surely, gift giving and barter, the first two stages, areas old as civilization itself. The third stage, cash markets, can be considered the truebeginning of organized commodity markets.
EMERGENCE OF ORGANIZED MARKETSUntil about the early 1600s, trade throughout most of Europe and Asia was not heavyenough to support resident merchants or local markets. Periodic market fairs servedas the trading outlets for large geographic areas. These fairs originated with themovements of itinerant merchants who bartered their local goods for exotic thingsin distant lands. Coinage was very scarce and the majority of transactions involvedsimple barter. Fairs were popular in ancient Greece and during the Roman Empire.Marco Polo brought back to Europe accounts of the gigantic Kinsai Fairs in China.Gradually, a network of highly specialized and well-organized fairs emerged.Rules confined traders to the fairgrounds and specified times were designated fortrading various commodities. In addition, rules required that bids and offers bemade publicly with every participant given an equal opportunity to accept them.299
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Rules also banned traders from contracting outside the fairgrounds in attempts tocorner a supply of a given commodity and thereby control its price.Eventually, guilds (trade associations) were organized to promote the interests of the emerging merchant class. Business disputes were settled in courts specifically established by the merchant class for that purpose, and a merchant code oflaw evolved from decisions handed down in these courts.As trade grew, pieces of paper called “fair letters” came into being as a medium of exchange. These letters had the effect of postponing settlement in cash to alater date, actually providing an extension of credit. Traders were now free to travel from fair to fair settling their accounts by canceling debits and credits with thefair letters, leaving any remaining balance due to be settled eventually by paymentin coin. As this medium of exchange was born, so was the cash (spot) market.Frequently, merchants would display samples of their wares, taking payment in coinor letter upon delivery when the title passed to the purchaser.
EARLY FUTURES TRADING IN JAPANAlthough the roots of futures trading can be traced to the medieval fair systems,it remained for Japan to develop sophisticated forward markets and the organizedsystem of futures trading as we know it today. The Japanese experience carried themthrough stages four and five of market development, completing the five-stageevolutionary process.Japan holds claim to the first recorded use of modern futures trading concepts,in the year 1697, approximately a century and a half before the common use of forward contracts in the United States.During the 17th century, Japanese noblemen were forced into the position ofbeing absentee landlords. This was the result of the ruling shogunate’s decree thatthese noblemen spend at least six months of every year in residence in the capitalcity so that the shogun could keep a watchful eye on his noblemen in an effort toprevent the possibility of their conducting a revolt or uprising against him.In keeping with the custom of the times, the noblemen maintained very highstandards of living. They depended heavily on their rice crops for income, but ricewas harvested during only a brief portion of the year, and they often ran short ofcash while living it up away from home. This was understandable. They weremaintaining dual households, entertaining lavishly, and indulging in extravagantwardrobes.As a solution to their cash shortage problems, the nobles began the practiceof issuing receipts against their rice crops, stored either in the country or in rentedwarehouses. Wholesale and retail merchants who eventually needed the rice wouldbuy the tickets against anticipated needs. Eventually, these tickets became a form
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of currency. It soon followed that merchants began to extend credit to the nobles inadvance of ticket sales. Some of the merchants were successful in manipulating themarket and, in the process, became quite wealthy. One of the wealthiest of merchantsin the city of Osaka set his house up as a center for rice market transactions. Thiswas actually the world’s first futures market. Later, this first exchange moved to theDojima district in Osaka and became known as the Dojima Rice Market.In many ways, this early exchange was strikingly similar to the modernfutures exchange of today. The market functioned under legal sanction of thenational government, and trades were executed in an orderly, well-disciplinedmanner according to rules established by the exchange. Transactions were clearedthrough a clearinghouse, with each trader establishing a line of credit with theclearinghouse of his choice. These clearinghouses were non-profit organizationswhich did, however, charge commissions for their services.The major difference between this first futures market and those that wereto develop later was the fact that no physical deliveries could be made. This, ofcourse, relegated the trading to gambling, and the government closed all exchangesfor a brief period in the early 17th century. Later, after government regulations ofthe market were expanded and physical delivery was made acceptable in lieu of acash settlement, trading was restored.
DEVELOPMENT OF FUTURES TRADING IN THE U.S.Although following at a much later date, a pattern of market development evolvedin the United States similar to that experienced by Japan. The use of forward contracts, which arose in response to marketing needs as commodity markets becamelarger and more complex, ripened eventually into organized futures trading.As the population in the U.S. grew and spread westward—and the economybecame more highly industrialized, with increased production capabilities—itbecame evident that an economic system based on local self-sufficiency was nolonger viable. There were new economic needs to be filled—needs for additionalcapital, additional credit, and for a means to absorb increased price risks causedby longer time periods between production and sale, expanded market areas, andever-increasing competition.Stock exchanges took care of the capital needs. The national banking systemanswered the demand for expanded sources of new credit. Initially, the use of various forms of forward contracts represented an attempt on the part of commodityhandlers to satisfy the need to reduce price risks.The Midwest grain market and the development of commerce in Chicagoprovided the impetus for the evolution of modern commodity futures trading in theUnited States. The use of actual, full-fledged futures contracts was preceded by
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approximately 25 years of merchants dealing in what were then referred to as “toarrive-contracts,” or what are now commonly called “forward contracts.”Soon, speculators outside the grain trade began participating in the bidding andholding of these contracts, passing them on to other parties before the delivery date.Bear in mind that this trading was taking place prior to the opening of any exchange.By the mid-1850s, contracts frequently changed hands several times before settlingwith a person interested in taking delivery of the actual commodity.
MIDWEST GRAIN MARKETDuring the 1830s and 1840s, prior to the opening of the railroads, grain farmersin the Midwest faced severe marketing problems. Every year at harvest time, grainsarriving in Chicago created a market glut. Farmers had to take whatever they couldget for their grain because the quantity available far exceeded the current demandof the market. Lack of adequate storage facilities made it impossible to store thegrain to hold it for future sale. As a result, it was not an uncommon sight duringthe height of the grain-hauling season to see thousands of tons of spoiled graindumped into Lake Michigan.As might be expected, the exact opposite of the above situation took placein late spring and early summer. All the harvest stocks were gone. Available grainwas in great demand and short supply. Anxious millers competed with one another to buy the available grain at astronomical prices.As a result, farmers began to arrange sale of their crops prior to production.These forward sales involved a firm commitment on the part of the farmer to deliver a specified amount of grain at a future time period say 10, 20, 30, or 60 days later.This left the farmer free to concentrate on the harvesting of his or her crop, assuredthat it was already sold. In this way, many of the producers’ and users’ problemsresulting from alternate oversupply/undersupply situations were solved throughthe use of forward contracts.Now buyers could take advantage of scheduling grain deliveries at designated intervals, which in turn enabled them to program grain arrivals and outbound shipments. Grain elevator operators and owners were able to plan with maximum utilization of their storage facilities in mind, thereby ensuring themselves ofa more profitable enterprise. In like manner, processors could count on having asteady supply of the commodity available for processing forward sales.With the opening of the Illinois-Michigan Canal in 1848, and the expansionof railroads, Chicago rapidly became a grain terminal supplying the East Coastand export trade. Processing facilities developed quickly to support local livestockfeed demands as well as for shipment east.
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But those involved in the handling of these commodities found that the “toarrive” contracts did not solve all their problems. For example:1. Qualities were not standardized and deliveries were unreliable.2. Terms of payment varied.3. Prices were not common knowledge.4. Contracts were not easily resalable.Refinements were made in the contracts to meet specific marketing needs.Eventually, these evolved into our modern futures contracts.
DEVELOPMENT OF CHICAGO COMMODITY MARKETSThe first commodity exchange in the United States was the Chicago Board ofTrade, organized in early 1848. Rather than an organized marketplace for trading,however, the early exchange functioned more as a meeting place where grain merchants could discuss their mutual problems. As the volume of grain trade increasedin the city, confusion reigned supreme. Trades were made everywhere, even onstreet corners and in saloons. It finally became apparent that trade was going to haveto be conducted in a single location—the Board of Trade.The board developed a set of standards for wheat and began a system ofweighing and inspecting grain. The substitution of weight for volume measuresmade possible the issuance of warehouse receipts, useful in change of title and ascollateral in trade financing.Gradually, as the problems inherent in the original forward contracts wereovercome, a smaller and smaller number of market participants actually entered intocontracts with the intent of taking delivery.In the late 1850s and early 1860s, there was still considerable contracting taking place outside the Board of Trade, for it wasn’t until October of 1865 that theboard adopted its general rules. By that time, all the essential ingredients of futurestrading had been incorporated in its rules. October 1865 should more realisticallyserve as the actual date for the origin of modern futures trading.Today, the Chicago Board of Trade deals in billions of dollars worth of commodities annually. Its most active contracts are not agricultural commodities, butrather financial futures and services. Although modern technology is employed, theprocess of trading has not changed much, but the influence of market participantsand the exchanges has broadened considerably.
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CHICAGO MERCANTILE EXCHANGEAnother of the giants among modern commodity exchanges is the ChicagoMercantile Exchange (CME), which got its start toward the end of the 19th century. Like the Board of Trade in accommodating grains, the CME developed inresponse to the distribution and pricing problems inherent in the egg industryaround the turn of the century. With the development of refrigeration techniques,Chicago became a forwarding market for eggs. As a result of large seasonal accumulations, egg dealers and storers of eggs found themselves faced with increasing problems of financing and price risk.The exchange, known first as the Chicago Produce Exchange and later as theChicago Butter and Egg Board, was initially established to determine price quotations, define grades for butter and eggs, and establish regulated trade practices.By 1916, trading in time contracts in these commodities was firmly established within the exchange. Trading was temporarily halted, however, with the imposition ofthe Food Control Act during World War I. After the resumption of trading in 1919,there was widespread dissatisfaction because of the non-fulfillment of contracts,caused primarily by sharp price advances. The butter and eggs contingent withinthe board felt that insufficient attention had been given to establishing rules fororganized trading in their commodities. Their solution was to reorganize the boardand eventually form a separate organization, which they named the ChicagoMercantile Exchange, also looking toward an expansion of well-regulated andorganized futures trading in commodities other than butter and eggs.The real impetus of CME growth was the establishment of meat futures contracts in 1961 and financial futures in 1972. Both have been highly successful. Itis known worldwide as the birthplace of financial futures and as the most innovative and influential exchange in the world.Today, actively traded commodities on the CME also include a large number of meat and livestock products, as well as eight foreign currencies, T-bills,Eurodollars, stock index futures, and many other financial instruments on theexchange’s International Monetary Market division.The electronic exchange discussed in Chapter 2 is representative of the nextgeneration of exchanges and worldwide markets. Such markets will utilize thetechnology of communications and the advances in international legal theory to conduct trading, pricing, and title transfer.
OTHER EXCHANGESIn addition to the CBOT and the CME, other exchanges have developed over theyears, each specializing in certain areas. Some exchanges have traded for a few years304
Historical Development of Commodity Futures Trading
and then closed due to lack of volume, but at present there are three major futuresexchanges in the U.S.—one in New York and two in Chicago. Minneapolis andKansas City each have an exchange also. The New Orleans Commodity Exchangestill exists, but trades on the floor of the MidAmerica Commodity Exchange inChicago rather than in New Orleans.
WHAT’S TRADED AND WHERE?Tables 28.1 through 28.3 list a majority of exchanges and the major items tradedtherein. A number of commodity and financial exchanges not listed in these tableshave been started or re-opened in Russia, Eastern Europe, Latin America, and thePeople’s Republic of China. Most of them have very little activity and do not actas true futures markets, but rather as local spot markets. Some of them will emergewithin the coming year as true futures markets.
COMMODITY FUTURES TRADING AND THE LAWFrom its earliest beginnings in the form of forward contracts and even followingthe opening of organized commodity futures exchanges, futures trading repeatedly faced attack from hostile legislators. Among the earliest of such attacks was aproclamation in 1610 which prohibited short selling in Holland. Almost always,general laws prohibiting organized futures trading on exchanges have been repealedwithin a short time after their passage. However, one such bill, banning futurestrading in onions, did become law in the U.S. in 1958. It is still in effect, althoughrecent studies by the U.S. government have shown that arguments used to persuade Congress of the need for the legislation were invalid and incorrect.The general public’s mistrust of futures trading stemmed in part from a misunderstanding of the concepts, particularly short selling, and in part from abusivepractices on the part of exchange members who had little regard for the publicwelfare during the early stages of commodity futures trading. The uninformed,therefore, quickly equated speculation in futures with gambling, an unfortunateequation which still persists today, though to a lesser extent.From 1884 to 1953, Congress introduced some 330 bills with the intent torestrain futures trading in one way or another. From 1890 to 1924, at least 30 separate investigations were undertaken in the grain trade. The Hatch Bill, whichpassed both houses in 1891 and almost became a law, would have imposed a taxupon all futures contracts in specified commodities. Fortunately, exchange officialsrecognized the need for getting their houses in order and so tightened internal controls and effected reforms in their organizations and the trading.305
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Table 28.1 ExchangesExchanges and Name
Country
AMEX
AMERICAN STOCK EXCHANGE
U.S.
ATA
AGRICULTURAL FUTURES EXCHANGE,AMSTERDAM
NETHERLANDS
BELFOX
BELGIUM FUTURES & OPTIONS EXCHANGE
BELGIUM
BM&F
BOLSA DE MERCARDORIAS & FUTURES, BRAZIL
BRAZIL
CBOT
CHICAGO BOARD OF TRADE
U.S.
CME
CHICAGO MERCANTILE EXCHANGE
U.S.
COMEX
COMMODITY EXCHANGE, INC.
U.S.
CSCE
COFFEE SUGAR & COCOA EXCHANGE
U.S.
DTB
DEUTSCHE TERMINBORSE
GERMANY
EOE
EUROPEAN OPTIONS EXCHANGE
NETHERLANDS
FFMA
FINANCIAL FUTURES MARKET AMSTERDAM
NETHERLANDS
FIN EX
FINANCIAL INSTRUMENT EXCHANGE
U.S.
FOX
LONDON FUTURES AND OPTIONS EXCHANGE
ENGLAND
FUTOP
GUARANTEE FUND DANISH OPTIONSAND FUTURES
DENMARK
HKFE
HONG KONG FUTURES EXCHANGE LTD.
HONG KONG
IFOX
IRISH FUTURES AND OPTIONS EXCHANGE
IRELAND
IPE
INTERNATIONAL PETROLEUM EXCHANGE
ENGLAND
KCBT
KANSAS CITY BOARD OF TRADE
U.S.
KRE
KOBE RUBBER EXCHANGE
JAPAN
LIFFE
LONDON INT’L FINANCIAL FUTURESEXCHANGE
ENGLAND
LME
LONDON METAL EXCHANGE
ENGLAND
MACE
MIDAMERICA COMMODITY EXCHANGE
U.S.
MATIF
MARCHE A TERME INTERNATIONAL DE FRANCE
FRANCE
MEFFRF
MEFF RENTA FIJA, SPAIN
SPAIN
MERFOX
MERCADO DE FUTUORS Y OPCIONESS.A., ARGENTINA
ARGENTINA
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Historical Development of Commodity Futures Trading
Exchanges and Name
Country
MGE
MINNEAPOLIS GRAIN EXCHANGE
U.S.
MONTREAL
MONTREAL EXCHANGE
CANADA
NYCE
NEW YORK COTTON EXCHANGE
U.S.
NYFE
NEW YORK FUTURES EXCHANGE
U.S.
NYMEX
NEW YORK MERCANTILE EXCHANGE
U.S.
NZFE
NEW ZEALAND FUTURES & OPTIONS EXCHANGE NEW ZEALAND
OSAKA
OSAKA SECURITIES EXCHANGE
JAPAN
SFE
SYDNEY FUTURES EXCHANGE
AUSTRALIA
SIMEX
SINGAPORE INT’L MONETARY EXCHANGE
SINGAPORE
SOFFEX
SWISS OPTIONS AND FINANCIAL FUTURESEXCHANGE
SWITZERLAND
SOM
STOCKHOLM OPTIONS MARKET
SWEDEN
TFE
TORONTO FUTURES EXCHANGE
CANADA
TGE
TOKYO GRAIN EXCHANGE
JAPAN
TIFFE
TOKYO INT’L FINANCIAL FUTURES EXCHANGE
JAPAN
TOCOM
TOKYO COMMODITY EXCHANGE
JAPAN
TSE
TOKYO STOCK EXCHANGE
JAPAN
WCE
WINNIPEG COMMODITY EXCHANGE
CANADA
In 1916, the Cotton Futures Act was passed, followed by the Grain FuturesAct in 1922, bringing trading in these commodities under government regulationfor the first time. Although widely bemoaned by the exchange community at thetime, these acts proved beneficial to both the exchanges and the public. The GrainFutures Act was subsequently amended in the 1930s and renamed the CommodityExchange Act. This legislation outlawed certain manipulative practices and established rules for safeguarding customer funds held by brokers. The act, which covered a broad range of commodities, was administered by the U.S. Department ofAgriculture’s Commodity Exchange Authority.Not all commodity futures trading in the United States fell under the aegisof the Commodity Exchange Authority. Only trading in those commodities specifically mentioned in the act were within its jurisdiction. The act has been amended from time to time to include additional commodities and to broaden its scope.
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Table 28.2 Commodities and Instruments Traded FinancialsCurrencies
Indices
Interest Rates
Country
Name
Country
Index
Country
Instrument
Australia
A$
Australia
All OrdinariesShare PriceIndex
Australia
Bank Bills, 90-day
Brazil
DollarCruzeiro
Brazil
Bovespa StockIndex
Treasury Bond,3-year
Canada
C$
Denmark
KFX StockIndex
Treasury Bond,10-year
Germany
D-MarkEuropeDM/JYCross (New)
EOE StockIndexEurotop 100
Belgium
Gov’t Bond
Brazil
Interest Rate
Japan
YenDollar/Yen
FTSE EurotrackCAC 40 StockIndex
Canada
Gov’t BondBankersAcceptances
Netherlands
Guilder,optionDollar/Guilder
CAC 40 Index,short-termCAC 4