A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives. Such instruments are priced according to the movement of the underlying asset (stock, physical commodity, index, etc.). The aforementioned category is named "derivatives" because the value of these instruments is derived from another asset class.
Read more about Futures Exchange: History of Futures Exchanges, Nature of Contracts, Standardization, Clearing and Settlement, Central Counterparty, Margin and Mark-to-Market, Regulators
Famous quotes containing the words futures and/or exchange:
“One of the things that is most striking about the young generation is that they never talk about their own futures, there are no futures for this generation, not any of them and so naturally they never think of them. It is very striking, they do not live in the present they just live, as well as they can, and they do not plan. It is extraordinary that whole populations have no projects for a future, none at all.”
—Gertrude Stein (1874–1946)
“There is a delicate balance of putting yourself last and not being a doormat and thinking of yourself first and not coming off as selfish, arrogant, or bossy. We spend the majority of our lives attempting to perfect this balance. When we are successful, we have many close, healthy relationships. When we are unsuccessful, we suffer the natural consequences of damaged and sometimes broken relationships. Children are just beginning their journey on this important life lesson.”
—Cindy L. Teachey. “Building Lifelong Relationships—School Age Programs at Work,” Child Care Exchange (January 1994)