Please enable JavaScript.
Coggle requires JavaScript to display documents.
FOWARDS, FUTURE, OPTIONS - Coggle Diagram
FOWARDS, FUTURE, OPTIONS
CHARACTERISTICS
Fowards
Trading is done by telephone, where participants direclty deal with the broker-dealers
The private parties negotiate the contract terms and are dealt with on a principal to principal basis
-
-
Future
Are derivate financial contracts thay obligate parties to buy or sell an asset at a predetermined future date and price
-
-
-
DIFERENCES
Foward contract is a private and customizable agreement that settles at the end of the agreement and is traded over
-
A call option gives the buyer the buyer the right (not the obligation) to buy an asset at a set price on or before date
Similarities
They are both financial contracts that exist between two parties. The buyer and seller of and underlying asset
-
-