First of all, futures and forward contracts have different terms. Futures are financial instruments with a term of three months, while forward contracts can have a long term, some of which can reach several years or even more than ten years.
Secondly, futures and forward contracts are traded in different ways. Futures are traded in the futures exchange, and both parties need to trade through the futures exchange, while forward contracts are traded in the interbank market, and both parties can trade directly.
In addition, the risks of futures and forward contracts are different. Futures is a relatively high-risk financial instrument, with investors' compensation risk, while the risk of forward contracts is relatively low, with only market risk and no investors' compensation risk.
Futures and forward contracts are quoted differently. The quotation method of futures is based on futures prices, while the quotation method of forward contracts is based on interest rates.
In short, there are some differences between futures and forward contracts. Investors should be familiar with the characteristics of these two financial instruments before investing, so as to choose the appropriate investment instruments according to their own needs.