Traditionally, futures contracts and options on those contracts have been bought and sold on a futures exchange, or trading floor, in a defined physical space.
In the US, for example, there are futures exchanges in Chicago, Kansas City, Minneapolis, and New York.
As electronic trading of these products expands, however, buying and selling doesn't always occur on the floor of an exchange. So the term is also used to describe the activity of trading futures contacts.
- Browse Related Terms: American Stock Exchange (AMEX), Auction market, Big Board, Dow Jones Wilshire 5000 Index, Exchange, Futures exchange, Market, Market price, New York Stock Exchange (NYSE), Opening, Over-the-counter (OTC), Primary market, Specialist's display book, Ticker (tape), Ticker symbol, Trading symbol