Forward contract: Difference between revisions
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* [[Forward market]] | * [[Forward market]] | ||
* [[Futures contract]] | * [[Futures contract]] | ||
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Revision as of 15:45, 30 May 2016
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.
