Question

. Question 2 In commodities trading, what is the role of forwards and futures?
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Answer 1

Answer:

A forward contract is a private and customizable agreement that settles at the end of the agreement and is traded over-the-counter. A futures contract has standardized terms and is traded on an exchange, where prices are settled on a daily basis until the end of the contract.

Explanation:

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Answer 2

Answer:

Key Takeaways. Both forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date. ... A futures contract has standardized terms and is traded on an exchange, where prices are settled on a daily basis until the end of the contract.

Explanation:

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