Contract Market


DEFINITION of 'Contract Market'

Any board of trade designated to trade a specific options or futures contract. Basically it's another word for "designated exchange".

BREAKING DOWN 'Contract Market'

For example, the Chicago Mercantile Exchange is a contract market for S&P 500 Index options and futures contracts.

  1. Option

    A financial derivative that represents a contract sold by one ...
  2. e-CBOT

    An electronic trading platform that gives traders the ability ...
  3. Derivatives Transaction Execution ...

    A market that supports the transaction of derivatives on which ...
  4. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on ...
  5. Futures

    A financial contract obligating the buyer to purchase an asset ...
  6. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
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  1. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
  2. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  3. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  4. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  5. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  6. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>

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