Forward Price


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Related to Forward Price: spot price

Forward Price

The agreed upon price of the underlying asset in a forward contract. When a forward contract is made, the parties agree to buy/sell the underlying at a certain point in the future at a certain price. The price is negotiated directly between the parties, unlike a futures contract, which trades on an exchange. Partly because there is little secondary market for forward contracts, determining the forward price is a zero-sum game: one party will gain on the contract and one will lose.
References in periodicals archive ?
Companies with exposure to commodity prices typically utilize forward price curves as references for valuing contractual assets and liabilities, measuring profit and loss resulting from changes in market prices and making better informed risk management decisions.
While a decline in the forward price of gas could pressure the Pool's margins, participants are required to pay regardless of the project's performance.
1 million in 2006, giving a forward price earnings ratio of 14.
A quotable contingent payment is a contingent payment substantially similar to a property right for which forward price quotes are readily available.
The Platts Follow-the-Sun oil forward price curves supplement Platts' existing assessments of the global oil markets published three times daily as the Platts Forward Curve (PFC)-Oil series and encompassing crude oil and refined products markets in the Americas, Asia and Europe, Middle East and Africa (EMEA).
The forward price was still at $3,051 on Friday thanks to some fund buying but then the market was hit by a surge in the value of the US dollar and the three-months price closed the week unchanged at $3,001.
LONDON, March 29, 2012 /PRNewswire/ -- Argus has become the first global energy price reporting organisation to provide forward price assessments for wholesale electricity in Bulgaria and Greece.
Having touched $3,297 on Friday, the forward price finally closed the week $57 up at $3,287.
From the wellhead or power station gate to the end-user, volatility in the spot and forward price of power and gas is creating an increasingly challenging environment for all market participants.
The forward price closed at $2,990 that day then fell to $2,965 on Friday before closing at $3,000.
Friday's trading pattern was entirely different with weakness from the start taking the forward price from $1685 down to a week's low of $1645 ahead of a close at $1654 for an overall loss of $47 per tonne over the week.
The ability to "crunch" through larger sets of data create large business intelligence competitive advantages which can be seen in new functionality such as P&L attribution, risk coasters, hourly scalars and user defined forward price curve blocks.