futures market

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futures market,

a commodity exchange where contracts for the future delivery of grain, livestock, and precious metals are bought and sold. Speculation in futures serves to protect both the developers and the users of the commodities from unfavorable and unpredictable price fluctuations. The U.S. futures market now includes Treasury bills and government guaranteed mortgages, or Ginnie Maes, thereby allowing speculation on changes in future interest rates. See commodity marketcommodity market,
organized traders' exchange in which standardized, graded products are bought and sold. Worldwide, there are more than 20 major commodity exchanges and many smaller ones that trade commodities, ranging from grains and beans, coffee, tea, and cocoa, and cotton
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References in periodicals archive ?
Tests of Rational Expectations and No Risk Premium in Forward Exchange Markets, Journal of International Economics (17: 1984)
Consequently, we can say that the Tunisian forward exchange market is efficient.
If i is the domestic interest rate and i* is the foreign rate on an equivalent asset then any premium on holding the domestic asset (i - i*) should be exactly offset by a premium in the forward exchange market.
Much of the activity in the forward exchange market is a result of underlying needs, such as banks' need to hedge foreign currency financing.
Tests of Rational Expectations in the Forward Exchange Market, " Southern Economic Journal, 46, April 1979, pp.
The risks associated with entering the forward exchange market equal the systemaic risks associated with the price levels in the respective countries and the real exchange rate.
Many look to the forward exchange market for a guess about a currency's future path.

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