Forward contract: Difference between revisions
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imported>Doug Williamson (Add link.) |
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* [[Deal contingent forward]] | * [[Deal contingent forward]] | ||
* [[Fixing instrument]] | * [[Fixing instrument]] | ||
* [[Foreign exchange risk]] | |||
* [[Forward market]] | * [[Forward market]] | ||
* [[Forward points]] | * [[Forward points]] | ||
* [[Futures contract]] | * [[Futures contract]] | ||
* [[Hedging]] | * [[Hedging]] | ||
* [[Risk management]] | |||
* [[Risk response]] | * [[Risk response]] | ||
* [[Transfer]] | * [[Transfer]] | ||
Revision as of 14:46, 20 July 2022
A forward contract is a binding agreement either to buy or to sell a certain amount of a foreign currency or another traded asset at a predetermined price at a specified time in the future.
Forward contracts are bilateral agreements.
One of the parties is contractually obliged to buy the asset, and the other party is similarly obliged to sell the asset.
