Forward contract refers to a contract in which both parties agree to buy and sell a certain amount of certain financial assets at a certain price at a certain time in the future. The contract stipulates the subject matter of the transaction, the validity period and the execution price at the time of delivery. It is a hedging tool. This is an agreement that must be fulfilled. Forward contracts mainly include forward interest rate agreements, forward foreign exchange contracts and forward stock contracts. A forward contract is a cash transaction in which a buyer and a seller reach an agreement to deliver a certain quality and quantity of goods in a certain period in the future. The price can be determined in advance or at the time of delivery. Forward contracts are over-the-counter transactions, and both parties have risks. If the spot price is lower than the forward price, the market situation is described as a positive market or premium. If the spot price is higher than the forward price, the market situation is described as a reverse market or price difference.

Futures, whose English name is futures, is completely different from spot. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts based on some popular products such as cotton, soybeans and oil and financial assets such as stocks and bonds. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

Reply time: 202 1- 10-20. Please refer to the latest business changes announced by Ping An Bank in official website.

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