Chapter 01 · Section 1.1

Contract Terms - Forwards

                   Forwards             Futures

Contract Terms     ........             ........
Delivery           ........             ........
Trading            ........             ........
Margins            ........             ........
Credit Risk        ........             ........
Liquidity          ........             ........
Cash Flow          ........             ........

Are the terms of a forward contract:

a) standard for every contract?
• b) particular to each individual contract and variable from contract to contract?
  Yes. Since a forward contract is an agreement between two parties, they are free to contract upon whatever terms they wish. The terms of one forwar contract may vary from the terms of another. Continue

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