In a forward contract, one party agrees to buy, and the counterparty to sell, a physical asset or a security at a specific price on a specific date in the future. If the future price of the asset increases, the buyer (at the older, lower price) has a gain, and the seller a loss.
A futures contract is a forward contract that is standardized and exchange-traded. The main differences with forwards are that futures are traded in an active secondary market, are regulated, backed by the clearinghouse, and require a daily settlement of gains and losses.