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What is the difference between future contract and forward contract?

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Question added by khalil disi , risk manager , ABCI ABC bank
Date Posted: 2016/12/20
RAHUL KUMAR
by RAHUL KUMAR , Investment Accounting and Reporting Specialist , Bank of Newyork Mellon

Difference is -future are standardized whereas Forward not. Forward has party default risk as no counter party or clearing corporation involves in these but in Futures Clearing corporation or counter party takes margin from both side, so in case of any default, money is given to promisary party.

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