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

Both futures and forwards are agreements to buy or sell an asset at a predetermined price on a future date. The key difference is standardization and exchange-listing.

A futures contract is standardized, traded on a centralized exchange, and is marked-to-market daily with a clearing house guaranteeing performance. A forward contract is customized, traded over-the-counter (OTC), and is a private agreement between two parties with no central guarantee.