A forward contract fixes the exchange rate for future delivery at a date to be agreed by both participants. A deposit (or a minimum margin) is usually required in forward transactions. For example, if I want to lock in today's rate to buy $10,000 USD at 1.5820 Canadian for the next 4 months, I will have the ability to purchase up to $10,000 USD at this rate.

cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some point in the future. Unlike futures contracts (which occur through a clearing firm), forward contracts are privately negotiated and are not standardized. see also contract.

A contract to exchange a specific amount of one currency for another on a future date at a predetermined rate. A deposit is normally required for forward contracts.

A commitment to exchange a specified amount of 1 currency for a specified amount of another currency on a specified future date.

cash market transaction in which two parties agree to the purchase and sale of a commodity at some future time under such conditions as the two agree. In contrast to futures contracts, the terms of forward contracts are not standardised, a forward contract is not transferable and there is no margin or collateral requirement to assure performance of the contract.

An agreement regarding the sale of an asset at a future date for a negotiated price.

Forward Contract - The agreement on an exchange of the certain sum of one currency for another under a fixed price during a concrete time in the future.

A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the future. All terms of the contract are customized, in contrast to futures contracts whose terms are standardized. Forward contracts are not traded on exchanges. Frontrunning A process whereby a futures or options position is taken based on non-public information about an impending transaction in the same or related futures or options contract.

An individually negotiated contract, with prearranged terms, covering a transaction that is set to take place at a specified future date.

A contract on which a seller agrees to deliver a specified cash commodity to a buyer sometime in the future. In contrast to futures contracts, the terms of forward contracts are not standardized. Forward contracts are not traded on federally designated exchanges.

an agreement for the sale and purchase of an asset at a specified future date at a fixed price.

An agreement between two parties calling for delivery of, and payment for, a specified quality and quantity of a commodity at a specified future date. The price may be agreed upon in advance, or determined by formula at the time of delivery or other point in time.

A cash transaction where the seller agrees to deliver a specific quantity and quality of goods to a specific place sometime in the future with prices established according to the contract. This could be the day of the contract or even the day of delivery. Since these contracts are not standardized, specifications are specific to each particular contract.

The commitment to buy or sell a currency or commodity on a specified future date at a specified price through an over-the-counter telephone or computer network.

An agreement for the future delivery of the underlying commodity or security at a specified price at the end of a designated period of time. Unlike a future contract, a forward contract is traded over the counter and its terms are negotiated individually. There is no clearing house for forward contracts, and the secondary market may be non-existent or thin.

The sale or purchase of a commodity for delivery at a specified future date.

A cash market contract which sets the terms and conditions of exchanging a commodity, whereby the buyer and seller agree upon the price when the contract is initiated. The contract is settled by delivery.

a binding agreement between you and PNC Bank that sets the exchange rate today (trade date) for a future date (value date), so you know the value of the payable or receivable and can plan accordingly

a binding obligation that allows companies to buy or sell a specified amount of foreign currency at an agreed exchange rate, for settlement at a specified future date - an 'agree now, pay later' arrangement

a binding obligation to buy or sell a certain amount of foreign currency at a pre-agreed rate of exchange, on or before a certain date

a commitment to buy a fixed amount at a fixed price at the end A Futures Contract gives the holder a daily claim to the variation in the market-determined Futures Price day by day

a contract between two people who agree to buy/sell a specified quantity of a financial instrument/commodity at a certain price at a certain date in future

a contract for the delivery of a specified quantity of an underlying asset (such as a commodity or an instrument) at a certain place, and a specified price and time in the future

a contract that specifies the details of a deal to be consummated in the future, such as the sale of wheat next September

a contractual obligation to buy (or, from the seller's standpoint, to sell) an asset, such as foreign currency, at a specified price at a future settlement date

a customized contract between two parties, where settlement takes place on a specific date in future at a price agreed today

a firm commitment to buy or sell something

a legally binding agreement to buy or sell a set amount of foreign currency at an agreed rate on a specified date in the future thus reducing uncertainty

a legally enforceable agreement for delivery of goods or the underlying asset on a specific date in future at a price agreed on the date of contract

an agreement between two parties to buy or sell currency at a set price on a future date

an agreement between you and Custom House for a future currency transaction

an agreement for the delivery of a commodity in the future, generally for a term which may be from a month to years long, at prices fixed at the inception of the agreement

an agreement to complete a specific foreign exchange transaction with Custom House within the period of the contract

an exclusive agreement between two parties to buy or sell a certain commodity for a fixed price at a future date

an obligation by one party to buy, and the other party to sell, a specific quantity of an underlying commodity or other tangible asset for an agreed upon price at a future date

an obligation to buy or sell an asset (real or financial) at a fixed time in the future and at a price that is agreed upon now

an obligation to purchase or sell a specific currency for an agreed price at a future date (up to one year) which is individually negotiated and privately traded by currency traders and their customers

a private over-the-counter transaction between counter parties known to each other, on terms agreed between themselves

a risk management tool that helps you manage your currency requirements

a service which allows you to secure today's rate for future use

a transaction in which two parties agree to the purchase and sale of a security, financial instrument, commodity or other property at a future date, known as the settlement date

Agreement to exchange amounts of one currency for another currency at an agreed fixed rate at a future date.

A contract entered into and at an agreed price to buy or sell a certain quantity of any commodity (including currency) at a specified future date.

A transaction in which a commodity is traded but for delivery at a specific date in the future.

A contract entered into today to buy or sell an agreed quantity at an agreed future date and at an agreed price.

A contract between two counterparties where one person agrees to buy from the other person, who agrees to sell, a certain amount of afinancial instrument or a commodity at a stated price but for delivery at an agreed future date.

The agreement on an exchange of the certain sum of one currency on another under the fixed price during the concrete moment of time in the future.

A private, over-the-counter derivative instrument that requires one party to sell and another party to buy a specific security or commodity at a pre-set price on an agreed-upon date in the future. Similar to a futures contract, which is traded on an exchange.

A commitment to buy (long) or sell (short) an underlying asset at a specified date at a price (known as the exercise or forward price) specified at the origination of the contract.

A principal-to-principal contract usually entered into by a mining company to sell its gold at a future price for future delivery. Substantially more flexible than a futures contract.

A transaction where one party agrees to deliver a physical commodity to the other or to settle a financial transaction with the other at a specific date in the future.

Fixed price contract for purchase or sale of a specified quantity of a commodity, security, currency or other financial instrument with delivery and settlement at a specified future date. Commonly used as a hedging tool. See "Hedge."

A cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures contracts, are privately negotiated and are not standardized.

An obligation to exchange a fixed amount of one currency for another at an agreed rate at a specific date in the future or between two agreed dates (also see Option Forward).

a contract that specifies the future price and quantity for future delivery

Sometimes used as synonym for "forward deal" or "future". More specifically for arrangements with the same effect as a forward deal between a bank and a customer.

forward contract is a buy/sell contract that has a set exchange rate for future delivery at a date to be agreed by both participants. Forward transactions normally require a deposit (or a minimum margin). For example, if we want to guarantee today's exchange rate to buy €10,000 at £1.5820 for the next 3 months, we will be able to purchase up to €10,000 at this exchange rate for the period of 3 months.

A contract where the exchange of currencies is to be made more than two business days ahead at a fixed exchange rate. A popular hedging tool, it allows companies and individuals to fix a rate of exchange for settlement in the future.

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.

Transaction in which buyers log in a specified foreign exchange rate for buying or selling foreign currencies which they will pay for or receive in the future.

A bilateral contract between a specific producer and a specific consumer for the delivery of some defined commodity at a defined price at a future date. See also Futures contract.

An agreement between two parties to exchange a specific amount of a currency at a specific date/period in the future. The rate at which the exchange is to be made, the delivery date/period and the amounts involved are fixed at the time of the agreement.

Non standardized, non organized cash market transaction (unlike Futures contract).

A contract to deliver a substantially fixed amount of property (including cash) for a substantially fixed price.

Purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current price, with delivery and settlement at a specified future date.

This is a contract which allows you to fix or lock into a favourable exchange rate which can then be used to buy currency on a specific date or period in the future.

A transaction of a commodity at some future time with agreed conditions. In contrast to futures contracts, the terms of forward contracts are not standardised, they are not transferable and there is no margin or collateral requirement to assure performance of the contract.

Forward contracts fix the exchange rate for the future delivery of a currency at a date that is agreed by both the currency broker and the client. A deposit is required to secure a forward contract.

A formal agreement between two parties to exchange different currencies at a future date. (For more details, go to Foreign Exchange Forward Contracts.)

A cash contract in which a seller agrees to deliver a specific cash commodity to a buyer at a specific time in the future.

Contract struck at the forward rate as specified above.

An agreement for insurance to come into force at some future date.

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.

An agreement guaranteeing a specific price for a product or service at a given future date. May also guarantee a specific rate of exchange when foreign currency is used.

see futures contract. Forward contracts can usually be customised with regard to their size and future date

A contract that trades an asset for settlement on a specific date in the future.

A foreign exchange instrument where one is able to purchase or to sell a specific amount of foreign currency, for a specific date in the future ranging from one month to one year, at a specific rate of exchange. This protects the buyer against the risk of fluctuating rates.

A cash market transaction in which a commodity trade is organised for a specific date in the future.

An obligation to buy (or sell) a financial instrument a future date and at a pre-set price. Forward rates refer to the currency rate that applies to a transaction at a future time.

A foreign exchange transaction in which the client locks in a rate for settlement on a date more than five days in the future.

A cash market transaction in which two parties agree to the purchase and sale of a commodity at some future time under such conditions as the two agree. In contrast to Futures Contracts, the terms of forward contracts are not standardized; a forward contract is not transferable and usually can be canceled only with the consent of the other party, which often must be obtained for consideration and under penalty; and forward contracts are not traded in federally designated contract markets. Essentially, forward contract refers to any cash market purchase or sale agreement for which delivery is not made "on the spot."

A contract in which the price for the future delivery of a commodity is set in advance. The contract price will either be higher (premium) or lower (discount) than the spot rate. Forward Contract is often used to hedge against adverse fluctuations in the exchange rate.

A deal in which the price for the future delivery of a commodity is set in advance of the delivery. The Forward rate is obtained by adding the margin to the spot rate. It is used to hedge against adverse fluctuations in the exchange rate that can affect amount of profit or loss at that future date.

An agreement between a buyer and a seller to deliver a fixed amount of electricity at a certain date or time and at a predefined price. Forwards are traded in the over-the-counter market.

A private, cash-market agreement between a buyer and seller for the future delivery of a commodity at an agreed price. In contrast to futures contracts, forward contracts are not standardized and not transferable.

forward cover futures

See on: Wikipedia Investopedia A forward contract fixes the exchange rate for future delivery at a date to be agreed by both participants. A deposit (or a minimum margin) is usually required in forward transactions.

Buying foreign currency, government securities, or other commodities to be delivered and paid for on a specific future date is called a forward contract. Such a contract specifies that the price to be paid is the spot price, or the market price, on the day the contract was arranged, rather than the price on the delivery date, which is the day the contract is settled.

A supply contract between a buyer and seller, whereby the buyer is obligated to take delivery and the seller is obligated to provide delivery of a fixed amount of a commodity at a predetermined price on a specified future date. Payment in full is due at the time of, or following, delivery. This differs from a futures contract where settlement is made daily, resulting in partial payment over the life of the contract.

trade that is agreed to at one point in time but will take place at some later time. future An exchange-traded derivative that is similar to a forward.

A highly efficient way to achieve certainty of future exchange rates. Forward Contracts will allow you to commit to a rate now for your future currency purchase requirements.

A cash transaction common in many industries, including commodity merchandising, in which a commercial buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date. Terms may be more "personalized" than is the case with standardized futures contracts (i.e., delivery time and amount are as determined between seller and buyer). A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery.

Represents an agreement between two parties to exchange an asset for cash at a pre-determined future date for a price that is specified today.

A contract that specifies the price and quantity of an asset to be delivered in the future. Forward contracts are not standardised and are not traded on organised exchanges.

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).