BEC question: forward and future contracts

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  • #176054
    hmesalguero
    Member

    This is a really confusing topic for me… Can someone tell me the difference between the two? Thanks

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  • #396591
    acamp
    Participant

    Basically the same thing, but Futures are exchange traded standard contracts whereas Forwards (For'weirds) are private agreements with any terms the two parties agree on. Since the futures are traded on an exchange, the daily value is more determinable, where the forward's value isn't really determined until the settlement date.

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