ag futures

futures markets provide a marketplace for persons interested in buying or selling commodities based on todays information and the perception of where prices will be in the future

both are agreements between two parties to make or take delivery of a particular good or service at a future date for a given price

• futures contracts trade openly and publicly on organized exchanges while forward contracts usually trade one on one or privatly between buyer and seller
• Futures contracts trade in a more liquid environment and teh market is often easier to enter and exit, Forward contracts are typically not fungible