How are futures traded on exchange?

Asked by Harry Augustine on September 13, 2021

Categories: Personal finance Options

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Futures contracts are standardized agreements that typically trade on an exchange. One party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date. The selling party to the contract agrees toprovide it.

What is Produce Exchange and its function? The produce exchange provides a convenient market place for its members. It is an organised market which provides place and opportunity forbuyers and sellers of a certain commodity according to set rules and regulations.2. Thus, produce exchanges facilitate transactions through grading and standardisation.

What are the types of commodity exchange? There are several types of moderncommodities exchanges, which include metals, fuels, and agricultural commodities exchanges.

What are the types of commodity market? There are two types ofcommodity markets: the normal futures market and the inverted futures market. In a normal market, the prices of futures contracts increase with maturity.

What are the commodity exchanges in India? Today, apart from numerous regional exchanges, India has Five national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), Indian Commodity Exchange (ICEX), National Stock Exchange (NSE) and Bombay Stock Exchange(BSE).