FORWARD CONTRACT
A customized contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardized nature makes it particularly apt for hedging. Unlike standard futures contracts, a forward contract can be customized to any commodity, amount and delivery date. A forward contract settlement can occur on a cash or delivery basis. Forward contracts do not trade on a centralized exchange and are therefore regarded as over-the-counter (OTC) instruments. While their OTC nature makes it easier to customize terms, the lack of a centralized clearinghouse also gives rise to a higher degree of default risk. As a result, forward contracts are not as easily available to the retail investor as futures contracts.
POPULAR TERMS
Accredited Advisor In Insurance - AAI
Conventional Cash Flow
Unearned Interest
White Label Product
Qualified Appraisal
POPULAR ARTICLE
SEE FOREX TUTORIAL
A Primer on Retirement Planning
Health Savings Account: Introduction
Everything You Need To Know About Stock Trader Types
Principles of Trading: Record Keeping and Taxation
A Guide to Your Personal Income Tax: Steps to Take before April 15
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
04:00 | Industrial production | May | |
04:00 | Retail Sales | May | |
04:00 | Fixed Asset Investment | May | |
04:00 | Unemployment Rate | May | |
04:00 | NBS Press Conference | ||
08:30 | Producer & Import Prices | May | |
09:00 | SECO Economic Forecasts | ||
10:00 | Gross Domestic Product | May | |
14:15 | Housing Starts | May |