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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With F
  5. Forward contract

Forward contract

Definition of 'Forward contract'

A contract between two counterparties where one person agrees to buy from the other person, who of course agrees to sell, a certain quantity of a financial instrument or commodity at a pre determined price but for delivery at an agreed future date.

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Related Terms

Foreign Currency SwapForward PointsForward OptionFRAUnbiased Forward Predictor TheoryCash and CarryForward Exchange ContractForward RateSpotCFDContract For DifferenceCurrency Futures ContractFutures contractFX SwapUnderlying CurrencyContangoCurrency HedgingDiscountExchange AgioExpectations Theory of Foreign Exchange

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