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Forward Cover

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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.


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Unlike tools that claim to turn "data into information" for the retailer, it was built specifically to deal with retail problems of massive detail, short processing windows, frequent reorganizations of product and location classifications, and complex calculations like open-to-buy, and forward cover.
 
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