Futures Market (Noun)
Meaning
A commodity exchange where futures contracts are traded.
Classification
Nouns denoting man-made objects.
Examples
- The futures market allows investors to speculate on the future price of commodities like oil, gold, and wheat.
- By trading in the futures market, companies can hedge against potential losses due to price fluctuations in the commodities they buy or sell.
- The Chicago Mercantile Exchange is one of the largest futures markets in the world, with a huge volume of futures contracts traded every day.
- A futures market serves an important function by providing price discovery and risk management to participants in the market.
- The volatility of the futures market can result in significant profits or losses for traders who speculate on price movements of commodities.