Forward contract: Difference between revisions

===“Forwards” versus “futures”===

Forward contracts are private, bilateral, [[over-the-counter]] contracts that may be customised to the parties’ hearts’ content. They can thus be contrasted with ''[[Futures|futures]]'' contracts, which are [[exchange-traded]], [[Central counterparty clearing house|centrally cleared]], standardised contract referencing the forward price of a commoditised asset, where there is no opportunity for customisation.