13 Facts About Futures exchange

Futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange.

Futures exchange contracts are derivatives contracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.

For example, ICE frozen concentrate orange juice contracts specify delivery locations as Futures exchange-licensed warehouses in Florida, New Jersey, or Delaware, while in the case of CME live cattle contracts, delivery is to Futures exchange-approved livestock yards and slaughter plants in the Midwest.

The futures exchange determines the amount of deliverable assets for each contract, which determines a contract's size.

When traders accumulate losses on their position such that the balance of their existing posted margin and their new debits from losses is below a thresh-hold called a maintenance margin at the end of a day, they have to send Variation Margin to the Futures exchange who passes that money to traders making profits on the opposite side of that position.

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Futures exchange contracts are not issued like other securities, but are "created" whenever open interest increases; that is, when one party first buys a contract from another party .

Each Futures exchange is normally regulated by a national governmental regulatory agency:.

Futures exchange tells the story of Thales, a poor philosopher from Miletus who developed a "financial device, which involves a principle of universal application".

The Futures exchange was closed during World War II and did not re-open until 1952.

Additionally, the forward contracts market was very illiquid, and an Futures exchange was needed that would bring together a market to find potential buyers and sellers of a commodity instead of making people bear the burden of finding a buyer or seller.

Futures exchange trading used to be very active in India in the early to late 19th Century in the Marwari business community.

London International Financial Futures Exchange, was launched in 1982, to take advantage of the removal of currency controls in the UK in 1979.

The Futures exchange modelled itself after the Chicago Board of Trade and the Chicago Mercantile Exchange.