4 Storage of products became a big business

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4. Storage of products became a big business. Many people built large storage facilities to store products and distribute them over a period of time. Because roads were being built, transportation was less of a problem, and distribution over a longer period of time helped to lower the price difference throughout the year.

1. In 1871, the CBT was destroyed in the Great Chicago Fire. It is believed that modern day contracts were traded as early as 1859, but the records were destroyed in the fire. 2. The CBT started a concept that is still used today. To buy a contract, a portion of the value was paid to insure that buyers would not back out of their contracts. With this new concept in place, defaulting on contracts meant losing the deposit money and the possibility of being sued in court.

4. Early on, the CBT dealt with the trading of grains (e. g. , oats, wheat, and corn). After World War II, many other contracts were added. Iced broilers, gold, and silver were traded along with the grains. In 1975, the first mortgage interest rate contracts were traded. 5. Currently, the CBT has contracts for gold, silver, U. S. Treasury bonds, U. S. Treasury notes, wheat, corn, oats, rough rice, and others. Anyone who can put a deposit down for part of the contract price is able to buy and sell at the CBT.

2. In 1972, the CME formed the International Monetary Market to trade foreign currencies a. As the exchange rates fluctuate in an uncertain world economy, international investors use the trading of foreign currencies for protection and profit. b. Some currencies the CME trades are the Japanese yen, Brazilian real, French franc, and the Mexican peso.