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What is the difference between forward contract and future contract?

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Question added by Sahdulla Ansari , Associate , Cognizant technology solution.
Date Posted: 2015/12/29
Vincenzo Pinto, CFA, PRM
by Vincenzo Pinto, CFA, PRM , Head of Financial Risk Management , Fideuram Asset Management

A forward is a bespoke transaction for future delivery of an asset, while a future is a listed, standardised instrument subject to inital and variation margin with daily liquidity.

YOUSAF  IHSAN
by YOUSAF IHSAN , Business Process Analyst , Air Canada

Forward is customised and Future is standaridised. But Forwards turnover is more than futures hence forwards provide better liquidity. In Forward credit risk on the counter party but in futures credit risk is on the clearing house 

Rod Ward
by Rod Ward , Chief Procurement Officer , Ellerine Holdings Ltd / ABIL (African Bank Investments Ltd)

Forward contracts are agreements between2 parties and futures contracts are exchange based and therefore are subject to those rules and authority as well as prevailing commercial realities.

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