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标题: Futures vs Forwards, which is more expensive? [打印本页]

作者: jbaldyga    时间: 2011-7-13 17:02     标题: Futures vs Forwards, which is more expensive?

Which is higher in explicit cost? For some reason I thought futures were but I'm seeing in a qbank question that they state forwards are more expensive.
作者: mar350    时间: 2011-7-13 17:02

IMO fwrds are more costly in terms of transaction costs because they are customized. Futures are standarized.
作者: strikethree    时间: 2011-7-13 17:02

Forwards are generally less liquid since they are customized. This leads to higher transaction costs. Other than liquidity, there isn't any real reason why one would be more expensive than the other.
作者: Analyze_This    时间: 2011-7-13 17:02

Does the qbank reference an LOS?

Explicit costs include:
- Broker Commission Costs
- Taxes
- Stamp Duties
- Fees Paid to Exchanges

I can't see any of those categories being higher for forwards. Implicit costs could be a different story, though.




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