From a cash flow standpoint,the difference between forwards and futures is that:

Question

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Futures are settled every day, which means that gains and losses are realized on a daily basis. In contrast, forwards are settled only at maturity, which means that the payment of the purchase price is postponed until the future date. This can have an impact on cash flow, as the payment of the purchase price is delayed in the case of forwards. Option A is incorrect because it is the opposite of the correct answer. Option B and C are irrelevant to the difference between forwards and futures in terms of cash flow.

From a Cash Flow Standpoint,the Difference Between Forwards and Futures