What Are the Differences Between a Futures Contract and a Forward

question 7

Essay

What are the differences between a futures contract and a forward contract?
Would you ever want to use a forward contract rather than a futures contract?

---

Definitions:

Planning Function

The process of setting goals, outlining strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Direction

Guidance or instructions given to manage or steer actions or decisions towards achieving a specific goal.

Experiential Learning

A learning theory that emphasizes learning through experience or learning by doing, involving active participation in a learning process.