Commodity Exchange (Noun)
Meaning
An exchange for buying and selling commodities for future delivery.
Classification
Nouns denoting man-made objects.
Examples
- The Chicago Board of Trade is one of the largest commodity exchanges in the world, trading futures and options on agricultural and financial products.
- The London Metal Exchange is a commodity exchange that deals exclusively in the trading of futures and options on metals such as copper and aluminum.
- A commodity exchange allows companies to hedge against potential price fluctuations in commodities such as oil and natural gas.
- The Shanghai Futures Exchange is a major commodity exchange in China, trading futures contracts on products such as soybeans and sugar.
- Investors use the Intercontinental Exchange, a global commodity exchange, to trade futures and options on energy commodities such as crude oil and natural gas.