Futures vs Forwards: Cost Implications

  • 21 Dec 2020
  • By CME Group
  • Topics: Metals

Both futures and forwards offer a mechanism to manage risk and investment exposure in the commodity markets. The structure of these two types of markets is subtly different, and these differences can have implications for the relative cost of trading and investing in these products. This paper examines the implications for the cost of trading in the markets for futures and forwards in metals, using the copper market as the example case.

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