What’s the difference between futures and forwards. They seem so complicated. Should I even bother with them?

Futures and forward contracts are similar but they do have some differences.

1. Futures are traded on exhange (fixed rates) whereas forward contracts are through private agreeement (rates can vary)
2. As such, there is a risk of defaulting for forward contract (counterparty risk)

Futures are employed by businesses that are exposed to large swings in exchange rates. This can help business to keep track of expenditure more easily. Retail investors can invest in futures too, if they expect future prices of the commodity to fall or rise.