Dojima Rice Exchange

DEFINITION of 'Dojima Rice Exchange'

The world's first commodity futures exchange. Established in 1697 in Osaka, Japan, by samurai who wanted to control the rice markets, the Dojima Rice Exchange was originally a market where rice was bartered. The exchange was dissolved in 1939.

BREAKING DOWN 'Dojima Rice Exchange'

Commodity futures are contracts obligating the buyer to purchase a basic good such as oil, wheat or corn, at a certain date and price in the future. Commodity futures are often settled in cash and are traded on futures exchanges such as the Chicago Mercantile Exchange and the New York Mercantile Exchange. Transactions may be completed on trading floors and through electronic networks.



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RELATED FAQS
  1. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ... Read Answer >>
  2. How can bartering result in a more optimal allocation of resources?

    Learn how bartering helps with resource allocation, managing trade deficits and exchanging goods. Review how individuals, ... Read Answer >>
  3. Who sets the price of commodities?

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  4. What types of futures contracts are typically sold on an exchange?

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  5. What are some examples of barter transactions?

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