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 ?
When Nasdaq Dubai approached us at Shuaa, to become market makers for the newly established futures market, we seized the opportunity.
and Karolyi, G.A., Intraday volatility in the stock index and stock index futures markets, Review of Financial Studies (4: 1991)
However, financial traders such as hedge funds and commodity index traders also face their own need to control risk and may have to reduce risk exposure in commodity futures markets when their risk-bearing capacity falls as a result of reasons outside of commodity markets.
From (8), when spot and futures markets engender new market information, information set [[phi].sub.t-1] exhibit time-varying trends, and then optimal hedge ratios exhibit time-varying trends.
(29) However, studies about futures markets vary in their conclusions because of the different data sources and price level used, types of futures market and analytical methods.
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Have Concerns over Futures Market Integrity Impacted Producer Price Risk Management Practices?
In 1971, as chairman of the Chicago Mercantile Exchange, I had an idea: a futures market in foreign currency, It may sound so obvious today, but at the time the idea was revolutionary.
On that day Seoul s benchmark KOSPI share index fell a hefty 48 points in the session s last 10 minutes due to arbitrage trading between the spot and futures markets. During that time about 2.4 trillion won ($2.16 billion) in sell orders from foreign investors were processed, most of them through Deutsche Bank s local securities unit.
Global multi-asset brokerage Newedge is using a solution from derivatives trading application provider FFastFill to provide qualified buy-side clients with access to China's futures markets.
"Across Europe, farmers, processors and consumers are all demanding the same thing: visibility." For Ciolos, "futures markets can contribute to this visibility.
In reality, futures markets are complex and poorly understood -- and benefit both producers and consumers.