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- A futures exchange or derivatives exchange is a central financial exchange where people can trade standardized futures contracts
A future is a contract that compromises the buyer to buy an asset at a certain price at a given time in the future.
Futures contract
01-12-2012
100 $
FUTURE EXCHANGE MARKET
What is a futures contract?
01-12-2010
% $
Producer
Buyer
Can benefit from obtainig a lower price if his speculations are right.
Benefits his as he secures the price he will obtain. He is willing to pay for certainity.
The total market of futures around the world is counted in hundreds of trillions of dollars.
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