Howdy, iam Carol Oliver, Today’s going to be an amazing day for you. I can feel it!
Hey there! Are you trying to figure out the difference between a forward future and a regular future? Well, you’ve come to the right place! Let me break it down for ya. A forward future is an agreement between two parties to buy or sell an asset at a predetermined price on a specified date in the future. On the other hand, a regular future is an agreement between two parties to buy or sell an asset at market price on a specified date in the future. Got it? Cool - let’s move on!
¿Cuál Es La Diferencia Entre Forward Y Futuro? [Solved]
Cuando se trata de mercados, hay dos tipos principales: organizado y no organizado. Si se negocia en un mercado organizado, el contrato recibe el nombre de Futuro. Pero si se negocia en un mercado no organizado, entonces es conocido como un contrato a plazo o Forward. ¡Fácil!
Forward Futures: A forward future is a contract between two parties to buy or sell an asset at a predetermined price on a specified date in the future. This type of contract is typically used for hedging purposes, as it allows one party to protect themselves from potential losses due to changes in the market price of the asset.
Spot Futures: A spot future is a contract between two parties to buy or sell an asset at the current market price on a specified date in the future. This type of contract is typically used for speculation purposes, as it allows one party to take advantage of potential gains due to changes in the market price of the asset.
Delivery Date: The delivery date for both forward and spot futures contracts is set when they are created and cannot be changed afterwards. For forward futures contracts, this delivery date will usually be further into the future than that of spot futures contracts, which are usually settled within days or weeks after they are created.
Price Variability: The prices associated with both types of futures contracts can vary significantly depending on market conditions and other factors such as supply and demand for the underlying asset being traded. However, since forward futures contracts have longer delivery dates than spot futures contracts, their prices tend to be more stable over time compared to those associated with spot futures contracts which can fluctuate rapidly due to short-term market movements
Forward futures are similar to regular futures, but with one key difference: they’re settled in cash instead of the underlying asset. So, while a regular future requires you to deliver the underlying asset at a certain date and price, a forward future is just an agreement between two parties to exchange cash on a certain date. In other words, it’s like an IOU that’s settled in cash instead of the actual asset. Got it? Cool!
