chicago board of trade: meaning, definition, pronunciation and examples
Low (Specialist)Formal / Financial / Historical
Quick answer
What does “chicago board of trade” mean?
A major futures and options exchange based in Chicago, USA, originally focused on agricultural commodities.
Audio
Pronunciation
Definition
Meaning and Definition
A major futures and options exchange based in Chicago, USA, originally focused on agricultural commodities.
Refers specifically to the historical and legal entity established in 1848, which was the world's oldest futures and options exchange. It merged with CME Group in 2007. The term can be used metonymically to represent the grain and agricultural futures trading markets.
Dialectal Variation
British vs American Usage
Differences
The term is American in origin and reference. In British English contexts, it is used only when discussing global finance, US markets, or history. Britons might refer more generically to 'the futures exchange' or 'the commodities market' unless specifying this entity.
Connotations
In American English, it connotes the historical heart of agricultural trading, the 'pit', and open outcry. In British English, it may simply connote a major US financial institution without the deep cultural/historical resonance.
Frequency
Much more frequent in American English, particularly in Midwestern and financial contexts. Rare in everyday British English.
Grammar
How to Use “chicago board of trade” in a Sentence
[The] Chicago Board of Trade + verb (merged, announced, trades)traded on + the Chicago Board of Tradea contract at + the Chicago Board of Tradeprices from + the Chicago Board of TradeVocabulary
Collocations
Examples
Examples of “chicago board of trade” in a Sentence
verb
British English
- The fund is heavily CBOT-traded.
- They specialise in trading CBOT-listed derivatives.
American English
- He CBOT-trades corn and soybeans every day.
- The strategy involves CBOT-trading arbitrage.
adverb
British English
- The grain was priced Chicago-Board-of-Trade-style.
- They traded quite CBOT-aggressively.
American English
- He started trading Chicago-Board-of-Trade-heavy in his portfolio.
- The market moved CBOT-fast after the report.
adjective
British English
- CBOT wheat futures fell sharply.
- It was a classic Chicago Board of Trade contract.
American English
- CBOT corn prices set the global benchmark.
- She follows the Chicago Board of Trade pit signals.
Usage
Meaning in Context
Business
The merger of the Chicago Board of Trade and the Chicago Mercantile Exchange created a derivatives powerhouse.
Academic
The establishment of the Chicago Board of Trade in 1848 was a pivotal moment in the formalization of futures contracts.
Everyday
I heard on the news that corn prices are up on the Chicago Board of Trade.
Technical
The December 2024 Corn (ZCZ24) futures contract on the Chicago Board of Trade settled at 447'2.
Vocabulary
Synonyms of “chicago board of trade”
Strong
Neutral
Weak
Vocabulary
Antonyms of “chicago board of trade”
Watch out
Common Mistakes When Using “chicago board of trade”
- Incorrect: 'chicago board of trade' (not capitalized). Correct: 'Chicago Board of Trade'.
- Incorrect: 'I bought shares on the Chicago Board of Trade.' (You trade futures contracts, not typically company shares). Correct: 'I bought a futures contract on the Chicago Board of Trade.'
FAQ
Frequently Asked Questions
No, it ceased to be an independent entity after its 2007 merger with the Chicago Mercantile Exchange (CME) to form CME Group Inc. It now operates as a designated contract market within the CME Group.
No. The CBOT primarily deals in futures and options contracts, not corporate equities (shares). You would buy company shares on a stock exchange like the NASDAQ or NYSE.
Open outcry was the traditional, physical method of trading on the CBOT floor, where traders used hand signals and shouted bids and offers. This defined the CBOT's culture for over 150 years before electronic trading became dominant.
The term 'Board' refers to its original governing body—a board of directors or a committee. 'Trade' specifies its purpose. It was a formal committee established to organise and regulate commodity trading in Chicago.
A major futures and options exchange based in Chicago, USA, originally focused on agricultural commodities.
Chicago board of trade is usually formal / financial / historical in register.
Chicago board of trade: in British English it is pronounced /ʃɪˌkɑːɡəʊ bɔːd əv ˈtrɛɪd/, and in American English it is pronounced /ʃɪˈkɑːɡoʊ bɔːrd əv ˈtreɪd/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Pit of the Board of Trade (refers to the chaotic, loud trading floor)”
- “To trade the Board (financial slang for trading CBOT contracts)”
Learning
Memory Aids
Mnemonic
Think: CHICAGO (the city) + BOARD (like a group of directors) + OF TRADE (for buying and selling). It's the board in Chicago that governs a specific type of trade (futures).
Conceptual Metaphor
MARKET AS A PLACE (a specific, physical/legal location where trading occurs). INSTITUTION AS A PERSON (The Board 'announces', 'decides', 'merges').
Practice
Quiz
What was the primary original focus of the Chicago Board of Trade?