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Simple English definitions for legal terms
Chicago Board of Trade
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A quick definition of Chicago Board of Trade:
Chicago Board of Trade: The Chicago Board of Trade is a place where people trade contracts for things like crops and other agricultural products. It's like a big store where people can buy and sell these contracts. People often use it to try to make money by predicting what will happen to the prices of these products in the future.
A more thorough explanation:
The Chicago Board of Trade, also known as CBT or CBOT, is a commodities exchange where futures contracts for various agricultural products are traded.
For example, a farmer may sell a futures contract for their crop of corn to a buyer on the Chicago Board of Trade. This means that the buyer agrees to purchase the corn at a set price on a specific date in the future, regardless of any changes in the market price.
The Chicago Board of Trade provides a platform for buyers and sellers to trade futures contracts, which helps to manage risk and stabilize prices in the agricultural industry.