Dojima Rice Exchange

A A A

DEFINITION

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.



INVESTOPEDIA EXPLAINS

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.








RELATED TERMS
  1. Catastrophe Futures

    Catastrophe futures are futures contracts traded on the Chicago Board of Trade ...
  2. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity Futures Trading ...
  3. Futures Market

    An auction market in which participants buy and sell commodity/future contracts ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor of a futures exchange, ...
  5. Futures

    A financial contract obligating the buyer to purchase an asset (or the seller ...
  6. Christmas tree (oil and gas)

    A vertical assembly of mechanical elements used in oil exploration and production ...
  7. FPSO (Floating Production Storage ...

    Acronym for Floating Production Storage and Offloading. FPSO is a floating vessel ...
  8. Day rate (oil drilling)

    In oil production, a day rate is the amount a drilling contractor gets paid ...
  9. Multibank Holding Company

    A company that owns or controls two or more banks. Mutlibank holding companies ...
  10. Short Put

    A type of strategy regarding a put option, which is a contract that allows (but ...
Related Articles
  1. An Introduction To Managed Futures
    Options & Futures

    An Introduction To Managed Futures

  2. The History Of Options Contracts
    Options & Futures

    The History Of Options Contracts

  3. Options On Futures: A World Of Potential ...
    Options & Futures

    Options On Futures: A World Of Potential ...

  4. Japan ETFs May Radiate To Further Weaken ...
    Mutual Funds & ETFs

    Japan ETFs May Radiate To Further Weaken ...

  5. How Countries Deal With Debt
    Credit & Loans

    How Countries Deal With Debt

  6. Oil Chart Suggests That Now Is The Time ...
    Chart Advisor

    Oil Chart Suggests That Now Is The Time ...

  7. Selling Premium As Small Caps Play Catch ...
    Options & Futures

    Selling Premium As Small Caps Play Catch ...

  8. What the best way to play backwardation ...
    Active Trading Fundamentals

    What the best way to play backwardation ...

  9. This Base Metal Is Precious To Astute ...
    Chart Advisor

    This Base Metal Is Precious To Astute ...

  10. The Role Of Speculators In The Commodity ...
    Investing Basics

    The Role Of Speculators In The Commodity ...

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center