Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the difference between Forward contracts and Future contracts?

user-image
Question added by Ali Abdelrahim Mohammed Marzoug , Coordinator/ Procurement Committee , World Vision International
Date Posted: 2017/05/03
Shaik Alavudeen Amanullah
by Shaik Alavudeen Amanullah , Business Development & Operation Executive , Saadi Saad Al Harbi & Partners Company

Thanks for inviting me to Answer !!!

Forward Contracts means the Contract stands between two communities about sell or buy terms with Non-standardized points related to assets, time duration & price value.

  Future contracts also similar to forward contracts. But with standardized points which will not allow certain terms like partial shipments, refunds etc 

Mohammed Awad
by Mohammed Awad , Regional Supply Chain & Operations Director , Tamakkon Co.

Forward contracts are the expected contracts to be made in a certain period of time yet the future contracts are planned to take place yet no budget is allocated yet for these contracts and they will take place if for example sales of this company grow up by a certain percentage.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.