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Futures Options Trading
By Kristy Annely

A forward contract is a customized contract between two parties to buy or sell a specified quantity of a particular commodity at a specified price on a specified future date.

A forward contract is a customized contract between two parties to buy or sell a specified quantity of a particular commodity at a specified price on a specified future date. Futures are exchange-traded forward contracts, i.e., forward contracts done in organized exchanges like stock or commodity exchanges.

A futures contract is standardized. To be more specific, futures being traded on exchanges have terms standardized by the exchange. The standardized items in any futures contract are: the quantity of the underlying produ...
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