What are the differences between forward contracts and futures contracts? What are some advantages and disadvantages of each

What will be an ideal response?

Answer: Forward contracts can be arranged between private parties for any maturity, quantity, commodity or financial instrument. Futures contracts have standardized quantities, quality, and expiration dates. Forward contracts are very flexible and can be tailored to the specific needs of the client. Because they are not standardized, it is difficult to know their actual value, so they may be more expensive to use than futures. Futures are openly traded on exchanges so their prices are set in efficient, transparent markets. The procedures to protect both sides of the contract against defaults are well established and monitored by the exchanges. The standardized features of future contracts also protect buyers from deception or misunderstandings.