The main difference between a futures contract and a forward contract is that with the former, buyers and sellers realize gains or losses on the settlement date, while the latter requires that gains or losses are realized daily.

Question

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The main difference is that futures contracts are standardized and traded on an exchange, which requires daily settlement of gains and losses (marking to market), while forward contracts are private agreements between two parties and the gains or losses are realized at the settlement date, not daily.

The Main Difference Between a Futures Contract and a Forward