src: previews.123rf.com
The forward market is an informal over-the-counter financial market where contracts for future delivery are put in. Standard futures contracts are called futures contracts and are traded on futures exchanges.
Should not be confused with the futures market, because
- Future contracts are traded in exchange whereas forward contracts are traded on the table.
- The developed market is highly customized.
- Each party has to deal with an opponent's risk, unlike the exchange-traded futures in which the contract is renovated.
Video Forward market
See also
- Advanced exchange market
Source of the article : Wikipedia