Futures exchanges standardize nonstandard forward contracts, establishing such features as contract size, delivery dates, and grades that can be delivered. Only the price and number of contracts are left for futures traders to negotiate.

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Futures exchanges standardize the terms of futures contracts, including contract size, delivery dates, and quality specifications, leaving only the price and number of contracts to be negotiated by traders.

Futures Exchanges Standardize Nonstandard Forward Contracts, Establishing Such Features as Contract