Forward cover

Forward cover

The purchase in the cash market of the difference between what you are obligated to deliver in a forward contract and the amount of the asset you own. For example, if you agreed to sell 100,000 bushels of corn in September in a forward contract, but you only have 60,000, you need to purchase 40,000 to cover your obligation.

Forward Cover

A purchase of an asset, especially a commodity, in order to be able to deliver a short position on a forward contract. For example, if one sells a forward contract stating that one must deliver 100 barrels of oil and one only owns 90 barrels, one must make a forward cover of 10 barrels of oil to fulfill the contract.
References in periodicals archive ?
2011 CONVERSION RATES FOR 18TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 21, 2011.
Dollar Bonds and profits thereon by all banks and for providing Forward Cover on Foreign Currency Deposits (excluding F.
At such low rates, forward cover is cheap -- and canners are glad of the cheaper fish to work with.
2011 CONVERSION RATES FOR 16TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 20, 2011.
2011 CONVERSION RATES FOR 15TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 17, 2011.
2011 CONVERSION RATES FOR 13TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 15, 2011.
2011 CONVERSION RATES FOR 11TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 14, 2011.
2011 CONVERSION RATES FOR 10TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 14, 2011.
2011 CONVERSION RATES FOR 9TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 13, 2011.
2011 CONVERSION RATES FOR 7TH JUNE 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 9, 2011.
2011 CONVERSION RATES FOR 30TH MAY 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 2, 2011.
2011 CONVERSION RATES FOR 28TH MAY 2011 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE JUNE 1, 2011.