First, the trading objects are different: the object of futures trading is the standardized contract formulated by the exchange; The object of forward transaction is non-standardized contract, and the quantity, grade, quality and delivery place of the goods in the contract are reached by the buyer and the seller through private consultation.

Second, the purpose of the transaction is different: the purpose of the forward transaction is to obtain or transfer the goods at some time in the future. Futures trading is to transfer risk or pursue risk return.

Third, the function is different: the function of futures trading is to avoid risks and price discovery; Although forward trading can adjust the relationship between supply and demand and reduce price fluctuation to a certain extent, it lacks liquidity, so its price authority and risk transfer function are limited.

4. Different trading methods: There is no fixed trading place for forward contracts, and they are usually traded at the counter of financial institutions or through communication tools such as telephone, while futures trading is conducted at special futures exchanges.

5. The delivery forms are different when the transaction expires: when the transaction expires, the forward contract will generally be delivered in kind or cash. Futures contracts are usually closed before maturity (or physical delivery).

References:

Baidu encyclopedia-futures

Baidu Encyclopedia-Forward Contract