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Futures and Forwards - Explained as never Before!

Dave the Wily Shepard and the Forward Contract….

Visit us at https://penfjell.com
Modern futures are based on the same principle, but they are standardised and traded on an exchange.

The exchange sets the contract rules — such as size, expiry date and delivery terms — while buyers and sellers determine the market price.

A clearing house stands between both sides to help make sure the contract is honoured.

Futures can create opportunity, but they also carry significant risk. Even smaller contracts can involve meaningful margin requirements, so this is a market worth researching carefully before getting involved.

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