Unveiling the Risk Spectrum: Evaluating the Risk Differences between Futures and Forwards
In the world of finance and investment, derivatives play a crucial role in managing risk and maximizing returns. Two commonly used derivative instruments are futures and forwards. While both serve similar purposes, there has been an ongoing debate about which instrument carries more risk. In this blog post, we will delve into the intricacies of futures and forwards, analyzing their risk profiles and shedding light on whether futures are indeed riskier than forwards.