Editing Futures contract (section)

===Exchange vis-à-vis OTC===
Futures are always traded on an [[Futures exchange|exchange]], whereas forwards always trade over-the-counter,<ref>{{cite web|url=http://chicagofed.org/digital_assets/publications/understanding_derivatives/understanding_derivatives_chapter_3_over_the_counter_derivatives.pdf|title=Understanding Derivatives: Markets and Infrastructure|access-date=2020-01-12|archive-date=2014-07-20|archive-url=https://web.archive.org/web/20140720080558/http://chicagofed.org/digital_assets/publications/understanding_derivatives/understanding_derivatives_chapter_3_over_the_counter_derivatives.pdf|url-status=bot: unknown}}</ref> or can simply be a signed contract between two parties. Therefore:
* Futures are highly standardized, being exchange-traded, whereas forwards can be unique, being over-the-counter.
* In the case of physical delivery, the forward contract specifies to whom to make the delivery. The counterparty for delivery on a futures contract is chosen by the [[Clearing house (finance)|clearing house]].