Futures and Options Exchanges and Procedures

Futures and options exchanges are typically physical places where the trading of these investment instruments takes place. The exchanges facilitate interaction among "floor traders," who work on commission for each trade they make or are paid a salary to execute the orders of their firm's brokers or desk traders. Futures are simply contracts that specify the future sale of a physical commodity or something as intangible as a stock market index. Options, consisting of "calls" and "puts," are contracts that specify that a stock, commodity, or other vehicle must be sold to another investor if that investment reaches a certain price. Perhaps the most notable futures exchange is the Chicago Board of Trade, located in Chicago, Illinois. The links included herein relate to futures and options exchanges and procedures.