How Does the Settlement Frequency Differ in a Forward Contract?
A forward contract typically has only one settlement event, which occurs on the specified expiration date. Unlike futures, there is no daily marking-to-market or transfer of cash flows.
The entire gain or loss is realized and settled at the contract's maturity. This lack of interim settlement is why forward contracts carry higher credit risk.
Glossar
Settlement Frequency
Mechanism ⎊ Settlement Frequency, within cryptocurrency derivatives and financial markets, defines the scheduled intervals at which contractual obligations are fulfilled, typically involving the exchange of cash or underlying assets.
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.