- forward contract
- A contract entered into by two parties who agree to the future purchase or sale of a specified commodity. This differs from a futures contract in that the participants in a forward contract are contracting directly with each other, rather than through a clearing corporation. The terms of a forward contract are negotiated between the buyer and seller, while exchanges set the terms of futures contracts. The CENTER ONLINE Futures Glossary————A contract that specifies the price and quantity of an asset to be delivered on in the future. Forward contracts are not standardized and are not traded on organized exchanges. Bloomberg Financial Dictionary————A private, cash-market agreement between a buyer and seller for the future delivery of a commodity at an agreed price. In contrast to futures contracts, forward contracts are not standardized and not transferable. Chicago Mercantile Exchange Glossary————A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. It is not standardized and is not traded on organized exchanges. Although the delivery is made in the future, the price is determined at the initial trade date. The New York Times Financial Glossary
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forward contract UK US noun [C] FINANCE► an agreement for the sale of currencies, goods, etc. at a fixed price to be given to a buyer on a future date
Financial and business terms. 2012.