3 ms·

I understand the terminology difference of forwards and futures, what I was asking about was when does a deal become a forward? The standard "I'll agree to buy

I understand the terminology difference of forwards and futures, what I was asking about was when does a deal become a forward? The standard "I'll agree to buy oil from you at this price next year" is obviously a forward, but a deal where there may be no particular timeline or even a promise of one seems to be more hazy.

jnordwick 9y ago
The dividing line would be the requirement for all contracts to be equivalent and traded on a venue. So an expiration date is probably a requirement. I have a hard time imagining such an open ended contract.