A future contract is more flexible than a forward contract because:

Question

Quizplus · Accepted Answer

A future contract trades on an organized exchange, which provides more flexibility compared to a forward contract since it allows for standardized terms, lower transaction costs, and easier entry and exit for traders. Future contracts can also be traded in a wider variety of amounts, making them accessible to smaller investors as well. The preset price feature applies to both forward and future contracts. Prices of future contracts are not necessarily published in the newspaper, but they can be easily accessed through various financial platforms and data providers.

A Future Contract Is More Flexible Than a Forward Contract