forward contract | English | Dictionary & Translation by Babylon

Babylon

English English dictionary

Download this dictionary

forward contract

contract guaranteeing the rate at which a business deal is to be transacted

Wikipedia English The Free Encyclopedia

Download this dictionary

Forward contract

A forward contract is an agreement between two parties to buy or sell an asset (which can be of any kind) at a pre-agreed future point in time. Therefore, the trade date and delivery date are separated. It is used to control and hedge risk, for example currency exposure risk (e.g. forward contracts on USD or EUR) or commodity prices (e.g. forward contracts on oil).
See more at Wikipedia.org...

This article uses material from Wikipedia^® and is licensed under the GNU Free Documentation License

Campbell R. Harvey's Hypertextual Finance Dictionary

Download this dictionary

Forward contract

A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. It is not standardized and is not traded on organized exchanges. Although the delivery is made in the future, the price is determined at the initial trade date.

Raynet Business | Marketing Dictionary

Download this dictionary

Forward Contract

a written agreement between two parties to deliver and make payment for a designated commodity or service at a designated future date.

A Guide to Futures | Options Market Terminology : English English Dictionary

Download this dictionary

Forward contract

A contract entered into by two parties who agree to the future purchase or sale of a specified commodity. This differs from a futures contract in that the participants in a forward contract are contracting directly with each other, rather than through a clearing corporation. The terms of a forward contract are negotiated between the buyer and seller, while exchanges set the terms of futures contracts.

Define forward contract

Translate forward contract