What is Difference Between Futures and Forward.Good mango

What is Difference Between Futures and Forward.

Trade.
1. Futures contracts traded on the Exchange.
2. Forward contracts are traded in OTC (Over the Counter).

Regulations.
1. Forward markets regulated by the parties involved (self-regulating).
2. Futures markets regulated by the exchanges and other authorities, such as commodity futures trading commission (United States).

Delivery.
1. Submission on the forward market in general is physically or actual delivery (about 90%).
2. Delivery on futures basis is done by reversing the actual position of only around 1-5%.

The Amount of the Contract.
1. large forward contracts tailored to the needs of buyers visa, usually far greater than the amount of futures contracts.
2. large determined by the stock futures contracts.

Due Date.
1. Forward Maturity Date can every day.
2. Maturity Date specified by the stock futures contract.

Settlement.
1. Deposit is not required in the form of forward contracts made between sellers and buyers.
2. Settlement of futures contracts made between the buyer and the exchange contract.

Margin.
1. Deposit is not required in the form of forward contracts.
2. Deposit required to remedy those involved with futures contracts.

Credit Risk.
1. Credit risk (default) borne by each party involved in the transaction forward. Each party involved must analyze the risks versus mainya, and then determine the amount or the maximum contract.
2. There is a Guarantor which is opposite the main parties involved in futures contracts.

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