1. Non-standardized contracts: Financial forward contracts are reached through one-on-one negotiations between buyers and sellers, and the contents of each contract can be customized according to the special needs of both parties. Therefore, non-standardized financial products are not traded in the open market of the exchange like futures contracts, but mainly in the OTC market.
2. Flexibility: The terms of this contract are very flexible, including but not limited to the transaction target, delivery time, delivery price, etc., which can be set according to the wishes of both parties and is conducive to meeting the specific risk management needs of the enterprise.
3. Low liquidity: Because it is non-standardized and OTC, the liquidity of forward contracts is usually lower than that of standardized futures contracts. This means that they may not find their counterparties as easily as futures.