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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
A pan-African derivatives exchange would be better placed to offer an economical and efficient platform enabling stakeholders to hedge forex risk and thereby become more competitive in the global market.
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Mr Peter Faust, Vice Chairman of the Swiss Intrex and Group CEO, said, “The new agricultural platform will be the first stand-alone and next-generation global online derivatives exchange for unrestricted cross-border trading in futures and options derivatives across multiple asset classes.
The international derivatives exchange Eurex and Wiener Borse AG (Vienna Stock Exchange) are set to enter into a technical cooperation.
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PARIS: The transatlantic market operator NYSE Euronext said its cash and derivatives markets achieved record trading volumes this year, with fastest growth at its London-based Liffe derivatives exchange.
announce they have signed a definitive agreement to merge the two organizations to create the most extensive and diverse global derivatives exchange. The combined company, to be named CME Group Inc., a CME/ Chicago Board of Trade Company, is expected to transform global derivatives markets, creating operational and cost efficiencies for customers and exchange members, while delivering significant benefits to shareholders.
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Southern Africa's fastest-growing economy will have a stock and derivatives exchange this year.
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The Swiss stock exchange has decided against a merger with Germany's Deutsche Borse, but is said to be ready to discuss other forms to expanding their successful partnership as joint owners of the Eurex futures and derivatives exchange.
The payment comes after a year during which Ms Furse lost the battle for London derivatives exchange Liffe to Paris-based Euronext.