Forward Contract

Definition

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.

Related Terms

Other terms related to 'Forward Contract' starting with the letter 'F'

Foreign Exchange, Front Running, Fund of Funds, Futures equivalent, Front Month

Browse by Letter »   A B C D E F G H I J K L M N O P Q R S T U V W Y Z