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.

Back to Forexpedia Main Page

"If money is your hope for independence, you will never have it. The only real security that a man can have in the world is a reserve of knowledge, experience, and ability."
Henry Ford
Clicky Web Analytics