Difference between future contract and forward contract?
Answers were Sorted based on User's Feedback
Answer / chandu
future contracts are standardized in terms of quantity,
price and time. forward contracts are tailer-made(just
communication between buyer and seller).
future contracts are traded in secondary market. forward
contracts are not traded.
Is This Answer Correct ? | 21 Yes | 2 No |
Answer / m.uma shankar
While futures contracts are traded on the exchange, forwards
contracts are traded over- the-counter market.
Is This Answer Correct ? | 14 Yes | 4 No |
Answer / sastry
forwards are traded off the stock exchange where as futures
are traded only in the exchanbes
Is This Answer Correct ? | 13 Yes | 10 No |
Answer / deepak
furture contract Rate per share, Date of settelment will always be fixed whereas under forward contract rate is not fixed
Furture contract will always be setteled on margin basis whereas forward contract may or not.
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / luqman
In Forward First party entering the contract has to take
the delivery of securities on expiry of contract, whereas
in future it can be anyone who holds the securities on the
expiry date.
Is This Answer Correct ? | 2 Yes | 8 No |
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