Differences between forward contract and futures contract?
Answer Posted / yadaram sudha
Future Forward
1. Standardized contracts. 1. Customized/Negotiated
contracts
2. Parties+ Exchange 2. Two parties.
3. Traded in Exchange 3. Over the counter nature
4. More liquid 4. Illiquid.
5. Requirement of payment of margin 5. No margin.
6. Follow daily settlement 6. Settlement happens at
the end of the period mostly by delivery.
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