IFMP Financial Derivative Traders Certification (FDTC), Pakistan Practice Questions - IFMP Financial Derivative Traders Certification (FDTC), Pakistan Exam

OTC forwards are always cash-settled; exchange contracts always require physical delivery Exchange-traded contracts are standardized and usually cleared through a clearing house; OTC forwards are customized bilateral contracts OTC forwards have no credit risk; exchange contracts have unlimited credit risk to each other Exchange-traded derivatives cannot be used for hedging