Futures are settled by the day. If the price goes up today and you earn 500 yuan, you can get the 500 yuan after the close, and you can reinvest. But the forward contract knows that you got the money in name, but you didn't get it (because it was due for delivery), so you lost the profit brought by the 500 yuan.

Forward contracts and futures contracts are both forms of transactions in which both parties agree to buy and sell a certain amount and quality of assets at a certain price at a certain time in the future. Futures contracts are standardized contracts formulated by futures exchanges, which stipulate the expiration date of contracts and the types, quantity and quality of assets to be bought and sold.

Forward contracts are contracts signed by buyers and sellers according to their special needs. Therefore, the liquidity of futures trading is high and the liquidity of forward trading is low.

Extended data:

When the forward contract expires, the cash can only be used to deliver the basic assets of one unit. In this way, at time t, both combinations are equal to one unit of the underlying asset. It can be concluded that the values of these two combinations at time t are equal. Namely:

f+Ke^[-r(T-t)]=S

f=s-ke^[-r(t-t)]( 1. 1)

The formula (1. 1) shows that the value of the bulls in the forward contract of non-income assets is equal to the difference between the spot price of the underlying assets and the present value of the delivery price. In other words, a unit's long-term contract for non-income assets can be composed of a unit's long-term basic assets and ke [-r (t-t)] * unit's risk-free liabilities.

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