Futures are traded on exchanges. These exchanges may be electronic, floor-based, or a combination of both.
Futures exchanges generally specialize in a particular group of products.
For example, the Intercontinental Exchange (ICE) trades petroleum futures such as Brent crude, natural gas, and electricity futures. The Chicago Board of Trade (CBOT) trades agricultural, interest rate, and metals futures.
In those markets that maintain a trading floor, generally one product trades in one pit. The participants in the pits are mainly brokers, traders, hedgers, and spreaders. The different delivery months offered by each product are dependent on the deliverable product.
Many exchanges (for example, ICE and Euronext.liffe) have developed electronic trading. These platforms match buyers and sellers and report the execution to the clients, the entering member firm, and the clearing facility.
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