Futures Market, Futures Markets

A futures market is an auction market where traders buy and sell futures contracts for delivery on a specific future date according to the terms of the contract. Futures markets are also called futures exchanges.

Well developed and effective futures markets facilitate transactions without impacting the underlying assets. These markets attract hedgers who are inclined to minimize the risk. They also encourage competition among the traders who come with varied market information and price judgment. A large number of traders participate in the buying and selling activities. These activities are based upon the global information pertaining to trends in demand and supply...