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http://marketsweekly.net/blog/legal-nature-of-forward-contracts/
to form. In practice, with a view to clarity of contents of the contract, forward contracts are usually concluded in writing. In the electronic trade, the electronic contract shall be deemed to be concluded upon order placement, payment of the initial margin deposit, covering the purchase or sale of a forward contract, and receipt of confirmation of acceptance of the order. Since forward contracts are not exchange traded, they are less liquid than other financial instruments, traded on regulated market; they bear higher risk of failure of the seller to deliver at maturity date or buyer to pay the full value of the delivery to the seller.