# Financial Solutions - Futures and Forwards

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Locking in Future Commodity Prices
 - Futures Contracts
 - Forward Agreements

## Futures Contracts

On an exchange and standardised

- NYMEX
- COMEX

Futures are settled on a daily basis, which has cashflow implications

## Forward Agreements

Off exchange and customised

Not settled on a daily basis. 

Different commodities to the usual ones. Customised factor is the biggest issue.

**Contracts that obligate a buyer to buy an assett or a seller to sell an assett at a set price at a future time**