Commodity HQ: The Difference Between Forwards And Futures

While commodities have enjoyed a renaissance of sorts over the past ten years, they are still somewhat outside the comfort zone of most investors. Part of that may be due to the perception that commodities are riskier, but some of it may be because of the unfamiliarity with the instruments and terms that make up the market. To cite just one example, futures and forward contracts (also called “forwards”) are very popular instruments among commodity investors, but very different in their fundamental natures.

Please read more here:
http://commodityhq.com/2012/the-difference-between-forwards-and-futures/