A negotiated commitment or agreement to buy or sell an asset or commodity at a set date in the future for a specific price. Similar to futures contracts, however forward contracts trade " over the counter " and not on an exchange.
A cash market transaction in which a future delivery date is specified. Forward contracts differ from futures contracts in that the terms of forward contracts are not standardized and are not traded in contract markets.
A cash market transaction in which delivery of the underlying is deferred until after the contract has been made. It is not standardised and is not traded on organised exchanges.