Forward contract

Forward contract,

Definition of Forward contract:

  1. Binding contract under which a commodity or financial instrument is bought or sold at the market price (spot price) as on today (date of making the contract), but is to be delivered on a stated future (forward) date in settlement of the contract. In contrast, a futures contract is only a formal promise. Also called cash contract, cash forward contract, or cash forward sale.

  2. An informal agreement traded through a broker-dealer network to buy and sell specified assets, typically currency, at a specified price at a certain future date.

How to use Forward contract in a sentence?

  1. You should always follow everything that is in a forward contract because if you dont it may be able to be voided.
  2. Risk tools include forward contracts, minimum price contracts, futures, options, crop insurance, hail insurance and other risk management tools.
  3. The forward contract was what interested me because I did not know exactly what it meant for us, or the buyer.
  4. You should always do everything you say you will do when you sign a forward contract to ensure that the other person sticks to their end.

Meaning of Forward contract & Forward contract Definition