Difference between forward and futures contract
Answers
Answer:
Both futures and options consider the advanced form of trading market business, and require additional training or specialist use in the field to fully understand their characteristics. When both types of contracts work, both the buyer and the seller gamble a short period (generally less than a year) that the price of the fines, stock or index will increase or decrease futures and options contracts Often confused, but they are similar that every subsequent events are involved. For a specified date on a specified date, there is a futures contractor's obligation to buy or sell a certain quantity of an asset. On the contrary, an option holder has the right (but not the obligation) to buy or sell a particular property at a particular price during a specified time period, to know about our futures fundamentals and options basics tutorials on one Take a look.
Steven Merkel answered this question.
Explanation:
Futures and forwards are financial contracts which are very similar in nature but there exist a few important differences:
- Futures contracts are highly standardized whereas the terms of each forward contract can be privately negotiated.
- Futures are traded on an exchange whereas forwards are traded over-the-counter.
hopes this help u
plz mark it as brainlist