1. Forward contracts have no fixed trading place, and are usually traded at the counters of financial institutions or through communication tools such as telephones, while futures trading is conducted at special futures exchanges.

2. Futures contracts usually have standardized contract terms. The contract scale, delivery date and delivery place of futures contracts are standardized, and there are clear provisions in the contract, so it is not necessary for both parties to negotiate again. Price is the only variable in futures contracts. Therefore, the most important task of both parties to the transaction is to choose the futures contract that suits them and determine the transaction price through exchange bidding.

3. In futures trading, the two parties are not in direct contact. As the intermediary of futures trading, the futures exchange (more precisely, the clearing house) is both the seller of the buyer and the buyer of the seller, and guarantees the final delivery. The exchange itself further guards against credit risks through system design such as margin.