Futures exchange

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Futures Exchange

An exchange on which futures contracts are traded. A futures contract is traded on a futures exchange; this allows them to be standardized contracts, which reduces uncertainty for investors. Futures exchanges are useful because it allows investors to make either speculative investments or hedges based on the expected future price for a commodity or other underlying asset. Many futures exchanges are also options exchanges.

Futures exchange.

Traditionally, futures contracts and options on those contracts have been bought and sold on a futures exchange, or trading floor, in a defined physical space.

In the United States, for example, there are futures exchanges in Chicago, Kansas City, Minneapolis, and New York.

As electronic trading of these products expands, however, buying and selling doesn't always occur on the floor of an exchange. So the term is also used to describe the activity of trading futures contacts.

References in periodicals archive ?
For a growing number of individuals and institutional investors, exchange-traded funds are being embraced as a mainstay of a diversified portfolio.
Designed to both meet the requirements of FAS 123 and incorporate the unique features that differentiate ESOs from exchange-traded options, this model explicitly accounts for such standard ESO features as early exercise, forfeiture and vesting requirements.
Exchange-traded funds take the indexing concept one step further by combining the best of three worlds -- mutual fund investing, index investing and individual stock ownership -- and throwing in a few extra perks.
Offering price has been set equal to 1000 roubles per exchange-traded bond.
Exchange-traded AGBs will be quoted and transacted on ASX in a similar way to shares, with each bond quoted as a gross price (capital plus accrued interest) with a face value of $100.