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CME Group Inc. is one the world's largest derivatives exchange management companies handling 3 billion contracts annually.

In the financial marketplaces of the world, there are numerous different styles and trading methodologies employed with the goal of achieving profitability. One of the most prominent forms of trading used by both retail and institutional traders alike is known as "scalping." Scalping is a trade management strategy in which the trader elects to take small profits quickly as they become available within the marketplace. Often referred to as "picking…

In a not-so-distant past, investors who were interested in pooled investments commonly purchased mutual funds, where they could capture the returns of a diversified portfolio using a single investment vehicle. Those funds, however, came with some limitations, among these the fact that positions in them can normally only be adjusted after market hours according to their net asset value (NAV). In more recent years, a new type of pooled investment…

Dark pools are networks of privately held trading forums, exchanges or markets that provide a platform for the anonymous trading of securities. Dark pools facilitate non-exchange-based trading practices between broker-dealer firms and investors interested in placing orders for the trade of specific securities outside of public scrutiny. Dark pools are also referred to as "dark pool liquidity" or "dark liquidity." Purpose Of Dark Pools The main objective of a dark…

In the trading of futures, "rollover" refers to the process of closing out open positions in soon-to- expire contracts in favour of contracts with later expiration dates. Rollover is unique to each product, and it produces a substantial impact upon volatility and price action within the marketplace. The days surrounding an individual contract's rollover are especially important in the area of risk management. The full attention of investors engaged in…

Penny stocks are traditionally identified as equities that trade at the low end of the ranges of prices found in the market, often less than a dollar or for "only pennies."

At the core of stock valuation is the notion that a company's current market price may differ from its intrinsic value.

What is Arbitrage? Arbitrage trading is an opportunity in financial markets when similar assets can be purchased and sold simultaneously at different prices for profit. Simply put, an arbitrageur buys cheaper assets and sells more expensive assets at the same time to take a profit with no net cash flow. In theory, the practice of arbitrage should require no capital and involve no risk. In practice, however, attempts at arbitrage…

In order to participate in the futures market, an individual assumes responsibility for several transaction costs associated with the facilitation of a trade. Overall, there are four basic types of fees incurred during the active trading of a single futures contract: Exchange/Clearing fees National Futures Association (NFA) fee Data fees Brokerage commissions Futures trading fees are assessed on a per-contract basis. For every contract traded, each type of fee is…

The Efficient Market Hypothesis (or EMH, as it's known) suggests that investors cannot make returns above the average of the market on a consistent basis. This is because under normal circumstances all available information about asset values and prices is rapidly disseminated throughout the market, bringing prices quickly to an equilibrium value. The hypothesis was developed in the 1960s by University of Chicago economics professors Harry Roberts and Eugene Fama.…

Random walk theory is the belief that a security's current market price is the product of chance rather than the sum of past events or human behavior.