Comparing "forward" and "futures" exchange contracts,we can say that:

Question

Quizplus · Accepted Answer

Both forward and futures contracts are marked-to-market daily. However, the major difference between them is that in futures contracts, the underlying asset is priced for future purchase or sale based on the prevailing market price at the time of the contract, while in forward contracts, the pricing is individually negotiated between the parties involved. Additionally, futures contracts are traded on organized exchanges and negotiated by floor brokers or traders through open outcry, while forward contracts are tailor-made OTC by banks for their clients.

Comparing "Forward" and "Futures" Exchange Contracts,we Can Say That