What Is the Difference between a "Future" and a "Forward" Contract? ⎊ Path

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

Both are agreements to buy or sell an asset at a predetermined price on a future date. A futures contract is standardized, traded on an exchange, marked-to-market daily, and guaranteed by a clearing house, reducing counterparty risk.

A forward contract is customized, traded over-the-counter (OTC), and subject to counterparty risk. Futures are highly liquid; forwards are tailored to specific needs.

How Does the Institutional Use of Over-the-Counter (OTC) Options Differ from Exchange-Traded Options?

Explain the Difference between a Forward Contract and a Futures Contract

What Are the Primary Differences between Exchange-Traded Derivatives and Over-the-Counter (OTC) Derivatives?

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

Differentiate between a Forward Contract and a Futures Contract

How Does a Futures Contract Differ from a Forward Contract in the Context of Cryptocurrency Trading?

How Do Standardized Futures Contracts Differ from Tailored Forward Contracts?

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

Glossar

Forward Contract

Structure ⎊ A forward contract, within cryptocurrency and financial derivatives, establishes a customized agreement for the future exchange of an asset at a predetermined price and specified date.