Forward contract: Difference between revisions
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*[[Contract]] | *[[Contract]] | ||
* [[Deal contingent forward]] | * [[Deal contingent forward]] | ||
* [[Derivative instrument]] | |||
* [[Fixing instrument]] | * [[Fixing instrument]] | ||
* [[Foreign exchange risk]] | * [[Foreign exchange risk]] | ||
Revision as of 22:13, 26 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.
