Is financial forward contract a standardized contract?
Financial futures contracts are standardized contracts. Yes Financial futures contract refers to the agreement reached by buyers and sellers in the form of organized transactions and public bidding to deliver a standard number of specific financial assets on a specific date in the future. Mainly including foreign exchange futures, interest rate futures, stock index futures and other contracts. Financial futures contracts can be regarded as standardized forward contracts.
Financial forward contract, also known as financial forward contract, financial forward contract and financial forward transaction, means that both parties promise to buy and provide a financial instrument at a certain time in the future, and sign a contract in advance to determine the price for future delivery. Financial forward contracts are more flexible through one-to-one transactions.