CFA CFA Level 1 Question of the Week – Derivatives

Question of the Week – Derivatives

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    • Avatar of AdaptPrepAdaptPrep
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        Greater liquidity and lower counterparty default risk are
        advantages for futures contracts over
        forwards.

        On the other hand, forward contracts allow much more customization than futures contracts. You can draft
        a forward contract for almost anything, whereas futures contracts are limited
        to the current market offerings.

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