Forward Vs Futures Contracts

This problem tests your understanding of two common derivatives and the market structure behind them. A strong answer should explain the differences in how these contracts are arranged, where they trade, how standardized they are, and how their pricing and settlement process works over time. Interviewers ask this because sales and trading candidates need to understand not just what a derivative does, but also how trading venue, customization, and transparency affect risk management, liquidity, and day to day market behavior.