A forward contract is more flexible than a futures contract.

Question

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A forward contract is an agreement between two parties to buy or sell an asset at a predetermined price and date in the future. The terms of the contract are negotiated between the two parties and can be customized to meet their specific needs. In contrast, a futures contract is a standardized agreement traded on an exchange, with predetermined contract specifications such as contract size, expiration date, and settlement procedures. Therefore, a forward contract is more flexible in terms of customization compared to a futures contract.

A Forward Contract Is More Flexible Than a Futures Contract