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The Major Difference Between Currency Futures and Forward Contracts Is

question 61

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The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients.

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Definitions:

Movability

The quality of a negotiable instrument that ensures it is mobile and available.

Negotiable Instruments

Negotiable instruments are written orders or unconditional promises to pay a fixed amount of money on demand or at a set time to the bearer or to the order of a specified person.

Consideration

Something of value that is exchanged between parties within a contract, giving it legal validity.

Offer And Acceptance

Fundamental concepts in contract law which determine when an agreement exists between two parties. An offer is a proposal while acceptance is the agreement to that proposal.

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