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02 February 2010 What is the difference between Future contract and Forward contract ?

please give a example



thnking u....

03 February 2010 Forwards: A forward contract is a customized contract between two
entities, where settlement takes place on a specific date in the future at
today’s pre-agreed price.
Eg. Contract between A & B where B agrees to Buy 100 shares at the rate of 15 on a specified date (say 31st March).
Here date is specified and agreed price is defined today.

Futures: A futures contract is an agreement between two parties to buy or
sell an asset at a certain time in the future at a certain price. Futures
contracts are special types of forward contracts in the sense that the former
are standardized exchange-traded contracts, such as futures of the Nifty
index.
Eg. Contract between A & B where B purchases a future to buy or sell at a certain date (say 31st March) and at the price on that certain date.






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