WHAT IS THE KANSAS CITY BOARD OF TRADE?
It’s a place where buyers and sellers gather to trade commodities – commonly known as a commodity exchange. Specifically at the KCBT, futures and options contracts are traded on hard red winter wheat and the Value Line® Index, a equally-weighted index of approximately 1,650 stocks. Traders of futures and options contracts can lock in a purchase price or sale price for a commodity in advance, reducing the business risks faced as a result of volatile prices. This process is known as “hedging.
