What Is the Primary Difference between a ‘Futures Contract’ and a ‘Forward Contract’?
Both are agreements to buy or sell an asset at a predetermined price on a future date. The key difference is standardization and exchange-trading.
Futures contracts are standardized, traded on a centralized exchange, and require a daily margin. Forward contracts are customized, traded over-the-counter (OTC), and typically settled only at expiration.
Tokenized derivatives often resemble futures due to standardization.
