Floors are normally traded in OTC markets and can have tailored terms and conditions with performance risk assumed by the involved parties. Forward Market OTC markets, whereby, the physical commodity or financial instrument is traded on a forward settlement basis. The contract is an agreement, with latitude for tailored terms and conditions, to buy or sell an underlying instrument at a certain future time for a certain price. The risk of contract performance is assumed by the involved parties. Futures Market Commodity exchange where futures contracts are traded.
Different exchanges tend to specialize in particular kinds of contracts.
The contract is an agreement, with standardized terms and conditions, to buy or sell an underlying instrument at a certain future time for a certain price. These exchanges also provide mechanisms that give the involved parties a guarantee for contract performance. The rate at which the delta changes with respect to changes in the underlying instrument's price. A measure of the delta's rate of change. An option spread strategy in which the options have the same strike price, but different expiration dates.