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.



RELATED TERMS
  1. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  2. Futures Exchange

    Traditionally, a term referring to a central marketplace where ...
  3. Against Actual

    An order between two traders looking to hedge their positions, ...
  4. National Commodities And Derivatives ...

    India's largest and most recognized commodities exchange, which ...
  5. Commodities Exchange

    An entity, usually an incorporated non-profit association, that ...
  6. Cash Market

    The marketplace for immediate settlement of transactions involving ...
Related Articles
  1. Markets

    The History Of Options Contracts

    Options and futures didn't originate with Wall Street power brokers. In fact, it all started with rice.
  2. Markets

    What are Commodities?

    A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commonly traded commodities include gold, beef, oil, lumber and natural gas. Additional ...
  3. Markets

    Who Produces The World’s Food?

    While the planet’s food basket contains no single commodity that the entire world consumes, its ingredients are very similar.
  4. Investing

    What's an Exchange?

    An exchange is an organized marketplace where securities and other financial instruments are traded.
  5. Trading

    An Overview Of Commodities Trading

    Commodities markets, both historically and in modern times, have had tremendous economic impact on nations and people. Investing in commodities can quickly degenerate into gambling or speculation ...
  6. Markets

    Analyzing The 5 Most Liquid Commodity Futures (WTI, ZC)

    Crude oil leads the pack as the most liquid commodity futures market, followed by corn and natural gas.
  7. Trading

    Grow Your Finances In The Grain Markets

    Hedging with futures can protect those who buy and sell commodities from adverse price movements.
  8. Markets

    Who Produces The World's Food

    We look at the top producers of the world's food basket.
  9. Markets

    Understanding the Commodity Market

    There are currently 50 physical and virtual commodity markets worldwide where almost 100 primary commodities trade through the exchange of ownership rights.
  10. Financial Advisor

    Why a 60/40 Portfolio is No Longer Good Enough

    Porfolios with a 60/40 allocation used to be the rule of thumb. Here's why that is no longer the case.
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?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
  4. What types of futures contracts are typically sold on an exchange?

    Explore the wide variety of available futures contracts traded on exchanges, which range from agricultural commodities to ... Read Answer >>
  5. What are some examples of barter transactions?

    Learn how bartering involves the provision of goods or services in exchange for other goods or services, and review different ... Read Answer >>
  6. How and where is revenue recognized from barter transactions?

    Find out how the IRS requires companies that engage in barter transactions to recognize the revenue from such transactions ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center