Chapter 01 · Section 1.1

Trading Method

                  Forwards             Futures

Contract Terms     variable             standard
Delivery           expected             only 2-5%
Trading            via phone            ........  
Margins            ........             ........
Credit Risk        ........             ........
Liquidity          ........             ........
Cash Flow          ........             ........

Forward trading is usually done by phoning around to find an interested partner.

What about futures trading?

a) The same.
• b) Decentralized.
  No. That is usually the case for forward trading. Futures trading is always centralized.
  c) By way of a centralized auction market.

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