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?
Contract terms are size, delivery place, delivery date etc.
Standardization only makes sense only when the same contract changes hands several times before delivery.
A forward contract is an agreement between only two parties. Who would force them to adopt standard clauses in their contract?