Explain the Difference Between a Forward Contract and a Futures

question 68

Essay

Explain the difference between a forward contract and a futures contract.

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Definitions:

German Firm

A business or company that is registered, headquartered, or primarily operates within Germany.

U.S. Firm

A company or business that is registered and operates in the United States of America.

U.S. Dollars

The recognized monetary unit of the United States is represented by the symbol $.

Malaysian Ringgits

The currency of Malaysia, symbolized as RM, used for all financial transactions within the country.