Use your own words explain the main differences between futures and forwards contracts. Which one is more risky?

Future and forward both contracts are quite similar, both are agreements to buy or sell an asset at a predetermined date for a predetermined price but there is some difference between them.

Future contracts are standardized contracts traded on exchanges as future contracts are public contracts while forward contracts are traded over the counter as forward contracts are private contracts Between two parties.

Forward contracts are governed by applicable law or we can say self regulated while future contracts are regulated by respective authorities. There is high counterparty risk in case of forward contracts while there is less counter party risk in future contracts.

No collateral required in case of forward contracts. Initial margin is required while dealing in future contracts. In forward contracts settlement is done on maturity date and in future contract settlement is done on daily basis.

Forward contracts are more risky compared to future contracts. Forward contracts are over the counter contracts so there is default risk that the parties of contract will not fulfill the terms of contract. While In future contracts clearing houses are involved so the risk is very low. Moreover, in case of future contract parties need to deposit some amount in their margin account as collateral with the brokerage firm.