forward contract

Popular Terms
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.

Use 'forward contract' in a Sentence

The forward contract was what interested me because I did not know exactly what it meant for us, or the buyer.
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You should always follow everything that is in a forward contract because if you don't it may be able to be voided.
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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.
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