Characteristics of futures contracts are customized contracts, traded by dealers or OTC markets, default risk, no initial deposit required, and settlement on maturity date.

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Futures contracts are standardized, not customized, and are traded on organized exchanges rather than OTC markets. They require an initial margin deposit and can be settled before the maturity date. Default risk is mitigated by the clearinghouse.

Characteristics of Futures Contracts Are Customized Contracts, Traded by Dealers