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what do you mean by forward market and how it is differnt from Futures market.

what do you mean by forward market and how it is differnt from Futures market.

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Forward market- A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are used for trading a range of instruments, but the term is primarily used with reference to the foreign exchange market.

Defrentiation- Forward markets are used to contact for the physical delivery of a commodity. By contrast future markets are 'paper' markets used for hedging price risks or for speculation rather than for negotiating the actual delivery of goods.

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