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Forward

Forward Contract

An agreement to buy or sell an asset at a certain date at a certain price. That is, Investor A may make a contract with Farmer B in which A agrees to buy a certain number of bushels of B's corn at $15 per bushel. This contract must be honored whether the price of corn goes to $1 or $100 per bushel. Forward contracts can help reduce volatility in certain markets, but they contain the risks inherent to all speculative investing. These contracts may be sold on the secondary market, but the person holding the contract at its end must take delivery of the underlying asset. Forward contracts are identical to futures contracts except that their provisions are not standardized. That is, forwards may be written with any provisions the parties desire. While this allows for greater flexibility, this makes the contracts less liquid on the secondary market and prevents them from being traded on an exchange.
References in classic literature ?
The same mail that bore to Mulcahy's mother in New York a letter from the colonel telling her how valiantly her son had fought for the Queen, and how assuredly he would have been recommended for the Victoria Cross had he survived, carried a communication signed, I grieve to say, by that same colonel and all the officers of the regiment, explaining their willingness to do "anything which is contrary to the regulations and all kinds of revolutions" if only a little money could be forwarded to cover incidental expenses.
He then proceeded to relate the motives of his silence, mentioning, however, large sums that he had forwarded to his friend, which had been returned with the letters unopened.
That time, however, did gradually come, forwarded by an affection on his side as warm as her own, and much less encumbered by refinement or self-distrust.
The English forwarded to the French baskets of flowers, of which they had made a plentiful provision to greet the arrival of the young princess; the French in return invited the English to a supper, which was to be given the next day.
The partners at Astoria forwarded by him a short letter to Mr.