Forwards are OTC derivatives futures are exchange traded ...
Forwards are OTC derivatives; futures are exchange-traded derivatives. 6.2.4 Arbitrage The law of one price states that two goods that are identical, cannot trade at different prices in two different markets. It is easy to buy from the cheaper market and sell at the costlier market, and make riskless profits. However, such buying and selling itself will reduce the gap in prices.
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