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How Do You Differentiate Between a Futures Contract and a Forward

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How do you differentiate between a futures contract and a forward contract?


Definitions:

Initial Investment

The upfront sum of money used to start an investment or project.

Compounded Daily

An interest calculation method where interest is added to the principal sum daily so that each day's interest earnings also earn interest in the future.

Nominal Interest Rate

The stated or named interest rate on a loan or investment, not accounting for inflation or compounding effects.

Compounded Monthly

Interest that is calculated and added to the account balance every month.

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