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Futures vs Forward Contracts Explained by Aditi is a document available to read on EtoBox.

A forward contract is a customized agreement between two parties to buy or sell an asset at a predetermined future date and price, with high counterparty risk and no guarantee of settlement until maturity. A futures contract is a standardized, exchange-traded agreement to buy or sell an underlying asset at a future date, with low counterparty risk, daily mark-to-market pricing and margin requirements, and potential to expire without delivery of the asset. Both are used for hedging purposes but futures are a

Author

Aditi

Language

EN