1. Futures contracts and forward contracts are contracts that stipulate to buy and sell a certain number of certain subject matter at a certain time in the future according to the agreed conditions.

2. Futures contracts are traded on the exchange, which is open, while forward contracts are traded outside the exchange.

3. Futures contracts are standardized contracts, and the varieties, specifications, quality, delivery place, settlement method and other contents of the contracts are uniformly stipulated except the price.

4. Futures contracts are settled through a special settlement company, which is a third party independent of buyers and sellers. Investors are not responsible for each other, there is no credit risk, only the risk of price changes.

Expand knowledge:

A futures contract is an agreement in which the buyer agrees to receive assets at a specific price after a specified time, and the seller agrees to deliver assets at a specific price after a specified time. The price that both parties agree to use in future transactions is called futures price. The designated R period in which both parties must conduct transactions in the future is called the settlement date or delivery date.

The assets that both parties agree to exchange are called "targets". If an investor obtains a position in the market by buying a futures contract (that is, agreeing to buy it at a future date), it is called a long position or a futures long position. On the contrary, if the position obtained by investors is to sell futures contracts (that is, to assume the contractual responsibility for future sales), it is called short positions or short futures.

Forward contract refers to a contract in which both parties agree to buy and sell a certain amount of certain financial assets at a certain price at a certain time in the future. The contract stipulates the subject matter of the transaction, the validity period and the execution price at the time of delivery. It is a hedging tool. This is an agreement that must be fulfilled. Forward contracts mainly include forward interest rate agreements, forward foreign exchange contracts and forward stock contracts.

A forward contract is a cash transaction, in which the buyer and the seller reach an agreement to deliver a certain quality and quantity of goods in a speciFIc fi period in the future. The price can be determined in advance or at the time of delivery. Forward contracts are over-the-counter transactions, and both parties have risks. If the spot price is lower than the forward price, the market situation is described as a positive market or premium. If the spot price is higher than the forward price, the market situation is described as a reverse market or price difference.

References:

Futures contract _ Baidu Encyclopedia

Forward Contract _ Baidu Encyclopedia