1. Futures contract are traded on organized exchange while forward contracts are OTC(Over The Counter) of nature and can be traded anywhere and anytime.
2. Futures trading have standardized contract terms while forwards have customized contract terms.
3. Futures market creates more liquidity but forward market are less liquid.
4. Futures contracts require margin payment while forwards have no margin payment.
5. Futures contracts follow dailty settlement i.e. MTM settlement while forward settlement happens at the end of the period.
2. Futures trading have standardized contract terms while forwards have customized contract terms.
3. Futures market creates more liquidity but forward market are less liquid.
4. Futures contracts require margin payment while forwards have no margin payment.
5. Futures contracts follow dailty settlement i.e. MTM settlement while forward settlement happens at the end of the period.
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