What Is The Similarities Between Forward And Futures Contract What Are The Similarities And Differences Between Futures And Forward Contracts?

What are the similarities and differences between futures and forward contracts? - what is the similarities between forward and futures contract

Similarities:
1. Both are derivative securities for future delivery or receipt. On the basis of P and Q today for the solution of the future or delivery in 1 weeks to 10 years.
2. Both are used to hedge currency risks, risks of interest rate risk or commodity prices.
3. Very similar in principle be used to achieve the same goal of risk management.
Differences:
1. Forward contracts are private contracts between a personalized bank and its customers (multinational companies, exporters, importers, etc.) according to the needs of customers. There is no secondary market for futures contracts, since it is a private contractual agreement because) the majority of bank loans (as opposed to bonds.
2. Futures contracts are to be settled at maturity futures contracts constantly repeated, the solution every day.
3. The majority (90%) futures contracts are settled upon delivery / receipt of goods. Most futures contracts (99%) will be paid in cash, not t he product / active.
4. The futures markets have daily price limits.