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. Commodity Market

    A physical or virtual marketplace for buying, selling and trading ...
  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. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Commodities Exchange

    An entity, usually an incorporated non-profit association, that ...
Related Articles
  1. Trading

    The History Of Options Contracts

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

    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. Investing

    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. Insights

    What's an Exchange?

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

    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. Investing

    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. Investing

    Grow Your Finances In The Grain Markets

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

    Who Produces The World's Food

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

    Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
  10. Trading

    Take A Tour Of The Futures Trading Pit

    Discover why controlled chaos can mean an exciting investment experience for you.
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. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center