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Why Are Forward Contracts Typically Illiquid

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Why are forward contracts typically illiquid?


Definitions:

Position Power

The authority and influence held by an individual in an organization due to their rank or official standing.

Personal Power

The ability to influence others and command respect based on one's personal qualities and skills, rather than on formal authority.

Coercive Power

A form of power that is based on the ability to compel others to comply through threats or punishment.

Credibility

refers to the quality or power of inspiring belief; the capacity to be believed or trusted.

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