Forward Price

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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 ?
This is a natural extension to our existing offering of forward price curves in oil, natural gas, coal and electric power," said Paul Waine, Platts global director of commodity risk solutions.
The graphs are compiled using market data from end-of-day reports; and provide information about what 1-year forward prices for gas and power are likely to be if clients "went to market" on that day.
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.
Thus, there may be a few dollars/MWh of risk in forward prices that could move either way depending on pending rule resolutions and market responses.
Aluminium: Backwardationsin the forward prices may be evident to next February but this is doing nothing to help the overall price.
Bell told the meeting that current forward prices value wheat for the coming harvest at around 75 [pounds sterling] per tonne - 15 [pounds sterling] per tonne higher than last season.
Are oil and gas forward prices unbiased estimates of oil and gas prices in the future?
BeefScout(TM) uses proprietary technology to provide market driven prices through a web-based tool to benchmark forward prices on cuts and trims of beef.
Copper, aluminium and nickel contracts featured, with most of the action being in the spreads between the cash and forward prices.
That's not to say that producing ethanol won't deliver handsome rewards - - forward prices are still well above production costs, OPIS calculates.
The spreads between the cash and forward prices continued to tighten with the cash-to-three-month backwardation standing at $230 per tonne.
While the APSC did allow an interim increase of $45 million filed in September 2005 to remain in effect, Fitch estimates that based on March 2006 forward prices EAI could under-recover approximately $7 million to $9 million per month.