Futures contracts characteristics
6 Dec 2017 And an option on a futures contract? Is that a derivative on a derivative? Yep, and this derivative shares many characteristics with its equity Because a futures contract is traded on an exchange, it gives rise to a few more differences between futures and forwards. The following is a list of key differences: Futures contracts are traded on an exchange while forward contracts are privately traded. Since they are traded on exchange, futures contracts are highly standardized.