Futures contracts differ from forward contracts in that

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Futures contracts are standardized contracts traded on exchanges, unlike forward contracts which are privately negotiated between two parties. Futures contracts also have standardized commodities, quantities, and expiration dates. While they can be used by financial managers to reduce risk, this is not a defining characteristic that distinguishes them from forward contracts. The ability to buy or sell an asset at a future time if its value has changed is also not unique to futures contracts, as it is a feature of options contracts. Additionally, the degree to which the value of a futures contract changes with the change in the price of the underlying commodity depends on the contract's specification and is not a defining characteristic that separates futures from forward contracts.

Futures Contracts Differ from Forward Contracts in That