A bullion transaction which settle in greater than two business days time. See Delivery Date.
Referring to future commitments with regard to prices ( commodity, currency, or investment instrument) for which terms are established in the present.
Similar to an FX swap except the first leg shows a value date in the future and not spot. Also, a future loan or deposit. Unlike the FRA, which applies to a notional transaction, the forward/forward is an on balance sheet obligation, derived from current money market rates. See FX Swap, FRAs.
Contractual agreement between two parties to buy or sell financial instruments such as, commodities, securities and currencies etc. for delivery at a specified future date and a fixed price. The buyer is said to be "long" the forward while the seller or "short" agrees to deliver the items under the specified conditions. Banks act as intermediaries in forward transactions and may function as the depository for any collateral associated with forward contracts.
purchase of foreign currency for delivery more than two days after the request is made. Forward exchange rates take account of interest rates applying to the respective currencies on international money markets.
a currency conversion with a future value date
a currency transaction which clears at a future date, instead of now)
a customised future, and unlike a future isn't traded on organised exchanges
an agreement between two parties to buy or sell a commodity or asset at a specific future time for an agreed upon price
a sales contract between a buyer (holding the long position) and a seller (holding the short position) for an asset with delivery deferred until a future date
A contract fixing the exchange rate for future delivery at a date to be agreed by both participants. A deposit is usually required in forward transactions.
(go to top) In the foreign exchange market, this is a tailor made deal where an investor agrees to buy or sell an amount of currency at a given date. The arrangement is calculated from the current or spot price, with an adjustment for the varying interest rate to cover the period agreed. Forwards are good for investors who need unusual deals which are not negotiable.
A trade for delayed settlement of a fixed amount at a fixed price on a mutually agreed date. Forward foreign exchange contracts are widely used to hedge currency exposures.
A deal for settlement later than the normal settlement date for that particular commodity or instrument.
The purchase or sale of metal for delivery at a specified future date. Hence Forward Price, Forward Contract.
Is a market similar to futures in terms of deferred deliveries. However, notable differences include the lack of contract standardization, the lack of a central clearinghouse, the potential for substantial counterparty risk, but it allows contractual term customization and deliveries at times, points and grades other than those listed for futures contracts. It is also used to refer to the bank currency market.
A deal that will commence at an agreed date in the future. Forward trades in FX are usually expressed as a margin above (premium) or below (discount) the spot rate. To obtain the actual forward FX price, one adds the margin to the spot rate. The rate will reflect what the FX rate has to be at the forward date so that if funds were re-exchanged at that rate there would be no profit or loss (i.e. a neutral trade). The rate is calculated from the relevant deposit rates in the 2 underlying currencies and the spot FX rate. Unlike in the futures market, forward trading can be customized according to the needs of the two parties and involves more flexibility. Also, there is no centralized exchange.
The pre-set exchange rate for an FX contract that settles at a pre-determined future date. The forward rate is based upon the interest rate differential between the two currencies involved. Forward rates can be calculated easily given the fixed term interest rates of each currency and their current spot rates.
A forward is a contract to buy or sell something at a price agreed today for delivery at some time in the future. Forward contracts are very like futures contracts. The main difference is, futures contracts are exchange-traded contracts whereas futures contracts are tailor-made, off-exchange contracts.
A contract (variously known as a “forward contract,” forward delivery agreement” or “forward purchase contract”) wherein the buyer and seller agree to settle their respective obligations at some specified future date based upon the current market price at the time the contract is executed. Forward contracts are generally entered into in the over-the-counter markets. A forward may be used for any number of purposes. For example, a forward may provide for the delivery of specific types of securities on specified future dates at fixed yields for the purpose of optimizing the investment of a debt service reserve fund. A forward also may provide for an issuer to issue and an underwriter to purchase an issue of bonds on a specified date in the future for the purpose of effecting a refunding ofan outstanding issue that cannot be advance refunded. Compare: FUTURES CONTRACT.
A transaction that settles at a future date.
Bets placed for future games.
Commits user to buying or selling and asset at a specific price on a specific date in the future
The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.
A reference to future commitments with respect to prices for which terms are set out in the present.
An agreement to execute a transaction at some time in the future.
A forward trade is a principal-to-principal non-transferable agreement which stipulates that delivery and payment for securities will take place on a date in the future at a price agreed to at the time of the transaction.
A forward contract is similar to a futures contract but trades over the counter, as opposed to on an exchange. The seller agrees to deliver a specified commodity or financial instrument at a specified price in the future. Terms are negotiated, not standardized.
It is a market similar to futures in terms of deferred deliveries. However, notable differences include the lack of contract standardisation, the lack of a central clearing house, the potential for substantial counter-party risk. It is also used to refer to the bank currency market.