Chapter 01 · Section 1.1
Contract Terms - Futures
Forwards Futures
Contract Terms Variable ........ Delivery ........ ........ Trading ........ ........ Margins ........ ........ Credit Risk ........ ........ Liquidity ........ ........ Cash Flow ........ ........
Are the terms of a futures 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 when the same contract changes hands several times before delivery.
A forward contract is an agreement between only two parties. A futures contract is an agreement between a party and the clearing house.
house.