Exploring the Pros and Cons of Futures and Forwards in Financial Markets
In the fast-paced world of financial markets, investors and traders have a range of tools at their disposal to manage risk and speculate on price movements. Two popular instruments used for this purpose are futures and forwards. While both serve similar purposes, they have distinct characteristics that set them apart. In this article, we will delve into the advantages and disadvantages of futures compared to forwards, providing valuable insights for market participants.