futuuripörsseissä

Futuuripörssi, or futures exchange, is a marketplace where standardized contracts for the future delivery of commodities, financial instruments, or other assets are traded. These contracts, known as futures, specify the price, quantity, and delivery date of the underlying asset. The primary purpose of futures exchanges is to provide a platform for hedging against price fluctuations and for speculation on future price movements.

Participants on a futures exchange can be divided into two main categories: hedgers and speculators. Hedgers use futures contracts to protect themselves from adverse price changes. For example, a farmer might sell futures contracts for their crops to lock in a selling price, regardless of whether the market price rises or falls. Speculators, on the other hand, aim to profit from predicting future price movements. They buy futures contracts if they expect the price to rise and sell if they expect it to fall.

The contracts traded on futures exchanges are standardized to ensure liquidity and ease of trading. This standardization includes the quality and quantity of the underlying asset, as well as the delivery location and time. The exchange acts as a central counterparty, guaranteeing the fulfillment of all contracts and reducing counterparty risk. Major futures exchanges operate globally, facilitating international trade and investment.