futures exchange
Học thuậtThân thiện
Definition
Noun: A futures exchange is a centralized, regulated marketplace where standardized futures contracts are bought and sold. It provides the infrastructure, rules, and clearing mechanisms for trading these derivative financial instruments.
Usage
A futures exchange facilitates trading in contracts that obligate the buyer to purchase, and the seller to sell, a specific asset at a predetermined future date and price. It is the formal, physical or electronic venue for this activity. - Traders on the futures exchange speculated on the price of wheat for the next harvest. - The Chicago Mercantile Exchange (CME) is a major global futures exchange.
Advanced Usage
- As an institutional concept: The term can refer to the institution itself, encompassing its regulatory framework, membership, and operational systems.
- The futures exchange implemented new rules to increase market transparency.
Variants and Related Words
- Futures market: Often used synonymously with "futures exchange," though it can more broadly refer to the overall trading environment for futures.
- Commodities exchange: A type of exchange where physical commodities are traded; a futures exchange often evolves from or operates alongside a commodities exchange.
- Derivatives exchange: A broader category that includes exchanges trading futures, options, and other derivative contracts.
Synonyms
- Futures market
- Board of trade (a historical term for some exchanges)
Related Terms and Concepts
- Clearinghouse: The entity associated with a futures exchange that guarantees the financial integrity of trades by acting as the counterparty to both buyers and sellers.
- Futures contract: The specific standardized agreement traded on the exchange.
- Open outcry / Electronic trading: The methods (traditional shouting in a pit or computer-based) through which trading occurs on the exchange floor or platform.
Noun
- a commodity exchange where futures contracts are traded