Differences between forward contract and futures contract?
- 6 Answers
- 12667 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answer Posted / hunish singla
1) Forward contract are non-standardized as compared to future contract.
2) There remains a problem of liquidity in forward contract but in the case of future contract, no such issue exists.
3) Forward contract are not traded on the stock exchange but the future contract are traded on stock exchange even the lot size, quality, delivery time etc are perfectly described in future contract.
4) Default risk prevails in the forward market because the counter party can default at any time but there is no risk in future market.
| Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
Are You A Reliable Person With Strong Work Ethics?
Tell me about your interests
How Does Bankruptcy Help Me In The Short Run?
What is 'contingency fund'?
Do you know how SLR is determined?
What are the different types of tools provided to the investors to keep track of the activities going on in the stock market?
What do you know about Planning Commission and its Chairman etc.
Tell us about your native place and famous places near to it.
AMONG LIFE INSURANCE, GENERAL INSURANCE & RISK MANAGEMENT, WHY DID YOU SPECIFICALLY CHOSE RISK MANAGEMENT/GENERAL INSURANCE/LIFE INSURANCE?
What are Exchange Traded Funds (ETF)?
What are your views on Triple talaq?
Tell about current five year plan and newly formed NITI Aayog?
why are some accounting principles or conventions are more important than the others?
compare cumulative & non-cumulative shares
what happend to the DLF co. during recession why the slow down in it's share and comapny also?
