forward contract definition

forward contract

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.

forward contract is in the Commodities & Precious Metals Trading, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.

forward contract appears in the definitions of the following terms: cash forward sale, cash contract, open position, cash forward contract and derivative security

forward contract appears in the other term:

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