Current location - Trademark Inquiry Complete Network - Futures platform - Similarities and differences between forward and futures
Similarities and differences between forward and futures
The main differences between futures and forwards are:

1, the standardization is different. Futures are more standardized, and futures contracts can be regarded as standardized forward contracts. The so-called standardization means that the variety, quantity, quality, grade, delivery time and delivery place of the contract goods are all established.

2. trading places is different. Futures are listed on the exchange and traded on the floor, while forward futures are traded over the counter.

3. Different liquidation methods. Futures can be delivered in kind or hedged, and forward futures can only be delivered in kind.

4. The payment amount is different. Futures are margin trading, but forwards are not.

5. Different functions. Futures have the function of speculation and can also avoid risks, while forward only has the function of avoiding risks.