Differences between forward contract and futures contract?
Answer Posted / vikas
Futures contracts are organised/standardised
forward contracts are non-standardised
futures contracts have daily MarkToMargin settlement
forward contracts gets settled only at expiry
Futures lot size and expiry defined by exchange
forwards ,lot size and expiry are mutually agreed
Futures are less risky as there is no counterparty risk
forwards are having counterparty rick ,means the counterparty can default at the time of payment
Is This Answer Correct ? | 9 Yes | 2 No |
Post New Answer View All Answers
What is 'funding volatility ratio'?
dicsuss with appropriate examples the firm's asset management decisions
What is the debt recovery procedure?
What do you understand by capital market line?
What are your views on Kashmir issue?
What is 'nostro account'?
Compare registered vs. Bearer debentures.
What Was The Purpose Of Setting Up Nabard?
Which organization controls the monetary policy of our country?
why should be must tin no for business
Name Different Kinds of Debentures According to Redemption Point of View?
Explain how you can generate schedule VI profit & loss account using auditors edition of Tally ERP 9?
How is cheque is different from boe?
Tell us the current Repo Rate and Reverse Repo Rate?
Whom do you admire the most and why?