From The Free Forex Encyclopedia
A forward contract is a non-standardized contract between two parties, who enter into an agreement to complete a transaction sometime in the future. The two parties agree today to buy (sell) an asset at a specific date in the future at a specific price.
The buyer of the asset assumes the "long" position of the contract ; the seller of the asset assumes the "short" position. The price that the buyer and the seller agree upon is called the delivery price.