Question: Two differences between Futures and Forwards contracts are: (Select both correct answers.) Both Forwards and Futures allow you do hedge against downside risk while allowing
Two differences between Futures and Forwards contracts are: (Select both correct answers.) Both Forwards and Futures allow you do hedge against downside risk while allowing you to benefit from upside potential. Forwards are marked-to-market and Futures are not Futures are marked-to-market and Forwards are not. Forwards are sold in the over-the-counter market because they are a standardized product while Futures are sold on an exchange because they are tailor made. Forwards are sold in the over-the-counter market because they are a tailor made product while Futures are sold on an exchange because they are standardized
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