Obviously, if the perceptions of the seller and the buyer as to future prices of the foreign currency differ, both will strike what they perceive is a win-win deal. Forwards are also quite common in commodities, and can be used either for speculation or for hedging. And XYZ expects the price of steel to go up. So, to hedge against the price risk, XYZ enters into a forward purchase agreement, for 10000 tons 6 months hence. If the price comes down, XYZ will be obliged to settle by making a payment for the price difference to the forward seller, but will be fully offset by the pre-fixed price it gets from its own forward sale contract.
Futures are more standardised forms of forward contracts and mostly operate in organised markets.
While it is possible to have a forward contract for any commercial transaction, futures are normally exchange-traded. As they are exchange-traded, the counterparty in a futures transaction is the exchange. To maintain the stability of organised markets, market-based futures transactions are subject to margin requirements, not applicable to OTC forwards. Futures market are normally marked to market on a settlement day, which could even be daily, whereas forward contracts are settled only at the end of the contract. So the element of credit risk is far higher in case of forward contracts.