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What is the difference between Forward contracts and Future contracts?

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Question ajoutée par Ali Abdelrahim Mohammed Marzoug , Coordinator/ Procurement Committee , World Vision International
Date de publication: 2017/05/03
Shaik Alavudeen Amanullah
par 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
par 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.

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