Definition of Futures Exchange

A Futures exchange refers to the market place where the exchange of futures contracts, futures and options, and other such future trading takes place.

Points to remember:

• The exchange allows buyers and sellers deal with equities and commodities with price certainty at a specific time in the future.
• Contracts in the exchange have standardized sizes, pricing information, bids, termination and expiration dates.

Examples:

• Bombay Stock Exchange (BSE).
• Indian Energy Exchange (IEX).
• Metropolitan Stock Exchange (MSEI) (Formerly known as MCX-SX).
• Multi Commodity Exchange (MCX).
• National Commodity and Derivatives Exchange (NCDEX).
• National Spot Exchange.
• National Stock Exchange of India (NSE).