Differences between forward contract and futures contract?
Answer Posted / vikas
Futures contracts are organised/standardised
forward contracts are non-standardised
futures contracts have daily MarkToMargin settlement
forward contracts gets settled only at expiry
Futures lot size and expiry defined by exchange
forwards ,lot size and expiry are mutually agreed
Futures are less risky as there is no counterparty risk
forwards are having counterparty rick ,means the counterparty can default at the time of payment
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