Forward contract is the basis of futures and swaps, and it is a derivative tool after innovation in different aspects of forward contract. Forward agreements can be used to price futures and swaps.

2. Difference

Degree of standardization: futures are standardized contracts, and swaps are non-standardized contracts.

Trading mode: Futures are traded in call auction, and swaps are traded off-site by manual inquiry.

Relationship between the parties to the contract: futures do not need to settle the counterparty, and the exchange understands the credit and strength of the counterparty.

3. Similar

Forward contracts are the basis of futures and swaps.