Answer:
See Explanation Below
Explanation:
The concept of forward contract is such that it is a form of accordance that exist between two parties (rhey buyer and seller) on a particular transaction which is to be carried out or executed at a later or future date.
While
The concept of futures contract is such a contract that exist between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future.
The differences between them are
1. Futures contracts are of high standard whereas the terms of each forward contract can be negotiated.
2 Futures are traded on an exchange whereas forwards are traded over-the-counter.