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Home > QFINANCE Dictionary > Definition of futures market

Definition of

futures market

Markets

market for trade in items with fluctuating prices a market for buying and selling securities, commodities, or currencies that tend to fluctuate in price over a period of time. The market's goal is to reduce the risk of uncertainty about prices in the period ahead.

Recommended Further Reading (Term count)
  • Trading in Commodities: Why and How
    This checklist outlines the why and how of commodity or futures trading.
  • Tick Value
    There are in fact two different uses of the term “tick value.”Tick value can refer to the value of the minimum price movement of a traded stock allowed by an exchange. For example, many US stock markets have a tick size of 0.01, which translates into a tick value of one cent for the NYSE. In contrast, the EUR futures market has a tick value of 0.0001. Tick value can also refer to the number of buyers and sellers of a stock who are bidding above...
  • The Role of Commodities in an Institutional Portfolio
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    The case for commodities is based largely on their historical tendency to offer returns that exhibit a low correlation with those of stock and bond market indices. Although commodities may be volatile, their low correlation with traditional investments can result in a significant diversification benefit. Table 1 shows the correlation between two commodity indices—the Standard & Poor’s GSCI (S&P GSCI) and the Dow Jones–AIG Commodity Index...
  • Merton Miller
    Nobel Prize-winning economist, and activist supporter of free-market solutions
    Merton Miller was a Professor of Economics, a financial innovator, economist, and renowned financial author. He worked during World War II as an economist in the Division of Tax Research of the US Treasury Department, and subsequently in the Division of Research and Statistics of the Board of Governors of the Federal Reserve System. He then received his doctorate, and was appointed Visiting Assistant Lecturer at the London School of Economics,...

Definitions of ’futures market’ and meaning of ’futures market’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’futures market’ and other financial terms with our online QFINANCE Financial Dictionary.

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