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derivatives market
Hedging, understanding the benefits of risk management in an enterprise wide solution. Risk management and hedging is a useful tool to reduce market place liability. The history of modern futures trading began in Chicago in the early 1800's. Gluts and shortages of these products caused chaotic fluctuations in price. This led to the development of a market enabling grain merchants, processors, and agriculture companies to trade in contracts to insulate them from the risk of adverse price change and enable them to hedge.

The first commodity exchange was the creation of the Chicago Board of Trade, CBOT in 1848. The origins of the commodity and futures exchange was created to support hedging. The hedger establishes an off-setting position on the futures or commodity exchange, thereby instituting a set price for his product. Someone buying a hedge is known as being "Long" or "Taking Delivery". You can view a complete listing of the worlds
different exchanges at world exchanges.

Entering your trades either for speculation or hedging is done through your broker or Commodity Trading Advisor. Commodity and Futures exchanges are distinct from Stock Exchanges, although they operate using the same principals. marketing environment