How Does a Crypto Forward Contract Differ from a Crypto Future? ⎊ Path

How Does a Crypto Forward Contract Differ from a Crypto Future?

A crypto forward is a private, customizable agreement settled between two parties on the expiration date. A crypto future is a standardized contract traded on an exchange, settled daily through a clearing house (marking-to-market).

Futures are highly liquid and have lower counterparty risk; forwards offer tailored terms but higher risk.

How Do Futures Contracts Differ from Forward Contracts?

Explain the Difference between a Forward Contract and a Futures Contract

What Is the Key Difference between a Futures Contract and a Forward Contract?

What Is the Difference between a Centrally Cleared and an Over-The-Counter (OTC) Crypto Derivative?

How Do Standardized Futures Contracts Differ from Tailored Forward Contracts?

What Is the Difference between a “Future” and a “Forward” Contract?

Does a CCP Offer Segregation for Non-Cleared, Bilateral Crypto Options?

How Does Collateral Management Differ between Bilateral and Cleared Trades?

Glossar

Crypto Forward Contract

Contract ⎊ A bilateral agreement stipulating the exchange of a cryptocurrency asset at a predetermined price on a specified future date, absent standardization found in exchange-traded futures.

Forward Contract

Instrument ⎊ A binding agreement to buy or sell a specified quantity of a cryptocurrency asset at a predetermined price on a future date, established off-chain but often settled via on-chain mechanisms or collateral management.