What Is the Tokyo Commodity Exchange?
The Tokyo Commodity Exchange (TOCOM) is a commodity futures exchange located in Tokyo, Japan. The Tokyo Commodity Exchange includes many commodities, but generally deals with futures contracts for trades on products like oil, precious metals, and rubber. TOCOM was established in 1984, a non-profit membership organization formed by a merger between the Tokyo Rubber Exchange and the Tokyo Gold Exchange. A commodity futures exchange can also be called a commodities exchange. This type of exchange deals with futures contracts, which are agreements to make a commodity trade at a designated price on a certain date. Investors make money on these contracts by putting money into a commodity they think will rise in value. On the delivery date, which is the date when the purchase occurs, if the commodity is higher in price than the contracted price, the futures investor turns a profit on the price difference.
