Several years ago, I was invited to visit the New York Mercantile Exchange (or NYMEX) by my friend Steven Spivak, a professional commodities trader.
For those of you unfamiliar with the NYMEX, it’s the exchange where commodities like orange juice, pork bellies, gold, crude oil, natural gas, copper, and silver are traded. (A good deal of the Eddie Murphy movie Trading Places takes place there.) The New York Stock Exchange (NYSE) trades primarily in equities, as opposed to the commodities traded on the NYMEX.
To my surprise, I was asked to ring the opening bell for the gold and crude oil exchanges, two commodities I’m heavily invested in. As soon I rang the bells, all hell broke loose. Traders like Steven were buying and selling commodity futures—as well as put and call options—as fast as they could.