The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients.

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Currency futures are traded on organized exchanges and are standardized in terms of contract size, maturity date, and the underlying currency. This allows for ease of trading and liquidity. On the other hand, forward contracts are customized agreements between two parties and are not traded on exchanges. They can be tailored to meet the specific needs of the parties involved, such as the currency pair, amount, and delivery date.

The Major Difference Between Currency Futures and Forward Contracts Is