13-36 Contingent credit risk on derivative contracts is more serious for futures contracts than for forward contracts.

Name: 13-36 Contingent credit risk on derivative contracts is more serious for futures contracts than for forward contracts.
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Futures contracts are standardized and traded on exchanges with clearinghouses that mitigate credit risk, whereas forward contracts are private agreements with higher credit risk due to the lack of such intermediaries.

13-36 Contingent Credit Risk on Derivative Contracts Is More Serious