| futures exchange | |
noun | |
| a commodity exchange where futures contracts are traded |
Futures Exchange
Traditionally, a term referring to a central marketplace where futures contracts and options on futures contracts are traded. More recently, with the growth in electronic trading, it is also used to describe the activity of futures trading itself.
Investopedia Commentary
The largest futures exchange in the U.S., the Chicago Mercantile Exchange, was formed in the late 1890s when the only futures contracts offered were for agricultural products. The 1970s saw the emergence of currency futures in major currencies. Today's futures exchanges are significantly larger, with hedging of financial instruments via futures comprising the majority of the futures market activity. Futures exchanges play an important role in the operation of the global financial system.
Related Links
Futures Fundamentals
Interpreting Volume for the Futures Market
Becoming Fluent in Options on Futures
Getting Started in Foreign Exchange Futures
Corporate Use of Derivatives for Hedging
See also: Chicago Board of Trade - CBOT, Chicago Mercantile Exchange - CME, Commodity Futures Contract, Currency Futures, Futures, Futures Market
