Maybe this is the first time you have heard of the Chicago Mercantile Exchange. Therefore, see the review here.
Pengertian Chicago Mercantile Exchange (CME)
The Chicago Mercantile Exchange (CME) is one of the largest futures and options trading exchanges in the world.
Based in Chicago, Illinois, CME offers a variety of financial products, including futures and options, covering a variety of assets such as stocks, currencies, interest rates, and commodities.
Role and Function of the Chicago Mercantile Exchange (CME)
Futures Trading Venue
The CME serves as the primary trading venue for futures contracts, where parties can trade futures contracts based on a variety of financial assets and commodities.
This function includes futures contracts for stock indices, currencies, interest rates, and others.
Risk Hedging
Market players use CME as a means to protect themselves from the risk of price changes by using futures contracts.
This kind of contract allows producers, traders and investors to reduce the risk of price fluctuations in financial markets.
Pricing
The CME is often used as a reference pricing platform for various assets.
The price of a futures contract traded on the CME can provide an indication of the value of the underlying asset.
High Liquidity and Trading Volume
With high trading volumes and strong liquidity, CME provides benefits to market participants by enabling trade execution at fair and liquid prices.
Chicago Mercantile Exchange dalam Cryptocurrency
CME also has a significant role in the world of cryptocurrency .
In 2017, CME introduced Bitcoin futures contract trading, which allows market participants to speculate on Bitcoin price movements without having to own the physical asset.
The existence of Bitcoin futures contracts on CME brings institutional recognition to the crypto asset class and provides an opportunity for institutional investors to get involved in Bitcoin trading.
This decision provides an opportunity for market participants to protect themselves from Bitcoin price volatility through futures financial tools.
It is important to note that the Chicago Mercantile Exchange (CME) acts as a platform that connects buyers and sellers of futures contracts, and not as an exchange that trades physical crypto assets.
Nonetheless, CME's presence in the cryptocurrency space has played an important role in opening the door to greater institutional participation in the crypto ecosystem.
Read Also:
Apa Itu Centralized Exchange (CEX)?
Apa Itu Decentralized Exchange (DEX)?
What is a Crypto Exchange and Why is it Important?
What is an Initial Exchange Offering (IEO)?
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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