What is the Futures Exchange Market?

I’m going to be discussing what is the future exchange? Now, the future exchange legally known in the US as a designated contract market, is at its core in auction market, ok, highly regulated, it’s technical and very complex, but it’s auction market nonetheless. Let me go in, and give you definition of exactly the definition between an auction market, and a dealer market. An auction market is an example of buying and selling financial instruments that take place of the floor of an exchange, such as the New York stock exchange. Sometimes these are referred to as outcry, people stand around a pole, and they bid back and forth, this is an auction market. Now, a dealer market is a market where dealers are assigned for specific a security that’s where a brokerage firm, or a trading department of a brokerage firm buy shares for it’s off and they hold those shares and they make a fluid market for people, this is the NASDAQ. Ok?

The futures exchange is the only place where futures, auctions on futures can be traded. Trading may take place either on that exchange trading floor or via electronic platforms. Now, the futures exchange is it’s US are subject to a great deal of moderation, they are regulated by the commodities’ future trading commission or the CFTC and the National Futures Association or NFA, ok, there are currently 13 future exchanges were registered in the United States, but not all are hosting active trading. The CME is the largest futures exchange in the US, by volume, and the first US exchange to become a fore profit corporation after its original private membership. The information provided here is for information purposes only and should not be considered an individualized recommendation or personalized investment advice, any investments or strategies mentioned here may not be suitable for everyone.