Options and Futures Understanding the Role of the Computerized Trading Reconstruction System
In financial markets, <strong>options</strong> and <strong>futures</strong> play a crucial role in hedging risk, speculating on price movements, and providing liquidity. They are derivatives, meaning their value is derived from an underlying asset, such as commodities, stocks, or indices. As these markets evolve, the need for sophisticated trading and surveillance systems becomes paramount. This article will explore the dynamics of options and futures, with a particular focus on the <strong>Computerized Trading Reconstruction System</strong> employed by the <strong>Chicago Board of Trade (CBOT)</strong>....