Forward

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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.

"Aerodynamically the bumblebee shouldn't be able to fly, but the bumblebee doesn't know that so it goes on flying anyway."
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