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A forward contract is a private and customizable contract that needs to be settled at the end of the agreement and is traded over the counter.
A futures contract has standardized terms and is traded on an stock or commodity exchange, where prices are settled on a daily basis until the end of the contract.
What else can I help you with?
How do you calculate a gain in stock price?
The % gain in a stocks price is calculated as the difference between the current market price and the price at which you bought divided by hundred. Ex: Assuming you bought shares of Google Inc same day last year for $100 and currently it is trading at $155. which means gain % is (155-100)/100 which is 55%
What is the difference between definition and explain?
a definition is brieflysummarizingsomething, so say define competitor you would say abusiness rival in the same market for products or services offered by an organisation but explaining you have to put ofr detail, so explain how hitler came to power you would have to go on further detail and apply yourknowledge. Basically definition is brief and short and explain you apply your knowledge and give detail
What is an exchange rate of 1 to 6 between US dollars and Egyptian pounds mean?
An exchange rate of 1 to 6 between US dollars and Egyptian pounds means that 1 US dollar can be exchanged for 6 Egyptian pounds. This rate indicates the relative value of the two currencies in the foreign exchange market. Consequently, if you have 10 US dollars, you could exchange it for 60 Egyptian pounds at this rate. This exchange rate can fluctuate based on economic factors and market conditions.
What is the difference between a stop and a stop-limit order?
The stop limit order combines the characteristics of a stop order and a limit order. A basic stop order will buy/sell your security at the market price once your stop has been reached or passed. A stop limit order will buy/sell the security at a specified price once the stop has been reached or passed. If you use a stop limit, and your limit is too high/low your order may not get filled which will negate the purpose of putting the stop on in the first place. I tend to stick with stop orders if I am trying to protect a loss on a security.
Single or multiple exchange rates?
Single exchange rates simplify currency conversion by using one fixed rate for all transactions, promoting transparency and ease of trade. In contrast, multiple exchange rates allow for different rates based on the type of transaction or market conditions, which can help manage economic stability and control capital flows. However, multiple exchange rates can create complexity and potential for arbitrage opportunities. The choice between them depends on a country's economic goals and market conditions.
Difference between forward market and spot market?
Spot market is also known as "cash market" where the commodities are sell on the current price or the spot rate and deliver immediately, where as in case of forward market, market dealing with commodities for future delivery at prices agreed upon today (date of making the contract).
Difference between futures market and forward market?
A Futures market is a forward market that trades through a centralised exchange, just like most stocks do. The classic forward market occurs as an Over-The-Counter (OTC) trade, rather than through an exchange.
What are the differences between a forward contract a future contract and options?
1) forward contract is not standardised one..it is only traded in OTC(over the counter) where as future contract is a standardised one it is traded in Secondary Market
What are the trading mechanism of forward market?
if the market goes up sell spot buy in future market if market goes down buy spot sell in future market
Forward market hedge?
forward market hedging is the way of making profit by predicting contract in advance to buy and sell of goods in the future.
What is the difference between local market and national market explain with example?
what is the difference between local market and national market
What is forward rate in foreign exchange market?
Transaction in future date by forward contract(future delivery) to purchase/sell foreign exchange at prevailing rate.
What is the difference between industry and market?
what is the differences between Industry and Market
When you choose future contract over forward contract?
When there isn't an active market for the forward contract. Generally, Futures contracts have a much more active open market than forward contracts and have alot more choice in terms of expiration months than forward contracts.
What is the difference between Forward trading and future trading in India?
Forward trading involves private agreements between two parties to buy or sell an asset at a predetermined price on a specific future date, typically tailored to the needs of the parties involved. In contrast, futures trading occurs on regulated exchanges with standardized contracts, allowing for greater liquidity and transparency. Futures contracts are marked to market daily, meaning profits and losses are settled daily, while forward contracts usually settle at the end of the contract term. Additionally, futures are subject to margin requirements and regulatory oversight, unlike forward contracts.
What is the difference between in the market and on the market?
In the market is where you do your buying and selling. On the market is where you put something that is for sale.
What is the difference between market and floating market?
a floating market floats but an market dont float
