A forward contract is a secret agreement made in the OTC markets by two parties to buy a currency at a specified future price. A futures contract is a structured agreement between two parties for the payment of money at a predetermined price at a future time and place. The forward and futures markets, unlike the spot market, do not use real currency. They instead use contracts that specify the currency, unit price, and settlement date for a specific currency type. Contracts formed between two parties will be bought and sold on the over-the-counter (OTC) forward market.