What Advantages Do Futures Contracts Have Over Forward Contracts? Details of futures contracts are made public because they are traded on exchanges, unlike forwards, which are negotiated privately between counterparties. Because futures are regulated, they come with less counterparty risk that forward contracts. These contracts are also standardized, which means, they come with a set terms and expiry date. Forwards, on the other hand, are customized to the needs of the parties involved. Are Forward Contracts Marked-to-Market? Forward contracts are not marked-to-market. That's because they are settled only on the date negotiated settlement date. This is in contrast to futures, which are marked-to-market.
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