Futures exchange

This is a market in which it is possible to make a range of contracts that look, quite literally, to the future.

The items that are traded can be tangible goods, such as wheat, or bizarre financial instruments invented by clever university graduates that backfired in the Great Crunch.

Futures contracts on the various items are traded in these markets which exist around the world and allow a hedging position to be taken.

Related Articles

Credit Scoring
Clearing House
Deflation
Gilt-edged
Home improvement loan

More Financial Words and Vocabulary Explained