Commodity Exchange
/ˈkɒm.ə.dɪ.ti ɪksˈtʃeɪndʒ/
Definitions
- (n.) A regulated marketplace where commodities such as agricultural products, metals, and energy are bought and sold, often via futures contracts.
The farmer sold his wheat futures on the commodity exchange to hedge against price fluctuations.
- (n.) An organized exchange facilitating the trading of standardized commodity contracts to ensure transparency and reduce counterparty risk.
The commodity exchange ensures fair pricing by matching buyers and sellers under strict regulatory supervision.
Forms
- commodity exchange
- commodity exchanges
Related terms
See also
Commentary
The term typically refers to both the physical marketplace and the regulated institution governing commodity trades; legal texts often emphasize regulatory and contractual aspects.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.