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Long-Term Forward Contract
(redirected from Long-Term Forwards)

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Long-Term Forward Contract
A non-standardized, over-the-counter agreement in which one party agrees to buy a certain asset from the other at a certain price, at a certain time more than one year in the future. Because there is little secondary market for any forward contract, long-term forward contracts are zero-sum games; one party will win and the other will lose.


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Though long-term forwards decline overall in both recoveries (1994-96 and 2004-06), the earlier experience includes a blip up in all rates through 1995, which is later reversed.
 
 
 
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