Futures Market

The futures market is an exchange where futures contracts are bought and sold. It provides a platform for participants, including speculators, hedgers, and arbitrageurs, to manage risk or profit from price movements in various asset classes, such as commodities, currencies, and financial instruments. The futures market plays a crucial role in price discovery, liquidity, and risk management, allowing businesses to stabilize costs and investors to speculate on future price movements.

Example

The Chicago Mercantile Exchange (CME) is a leading futures market where traders buy and sell contracts for commodities like oil, gold, and agricultural products, facilitating global price discovery and risk management.