Forward market

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Forward market

A market in which participants agree to trade some commodity, security, or foreign exchange at a fixed price for future delivery.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Forward Market

The trading of forward contracts between investors. Because forward contracts are not standardized and are traded over-the-counter, the forward market is relatively informal compared to the futures market.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
However, it remains much stronger than it was last year, when the forward market implied depreciation of about 2.7 per cent because of worries about Saudi Arabia's ability to cope with an era of low oil prices.
Among the Top 10 forward market capacity traders, the average forward trade date of Case 1 deals was 269 days in advance of the future effective date.
Over the last seven years, FMM's user base has been acquiring game tickets through the forward market and asking for a similar service for travel.
In the forward market, there are a few dominant servicing systems used in the industry and they are very similar.
Traders use forward markets to bet on future directions of currencies.
The underlying arbitrage should quickly eliminate the international return differentials by narrowing interest-rate spreads and encouraging the foreign currencies to appreciate in the spot market, and depreciate in the forward market, relative to the dollar.
Offsetting factors are the appreciation of the USD against the Euro and GBP, the escalation in the forward market USD prices for copper and the careful project planning leading to the extension to the mine life. warned that the price of gas on the forward market for next winter is 22% higher than it is at present, making the cost of procuring energy more expensive for suppliers.
And once the crisis began, the Bank of Thailand pulled the bone-headed financial move of the decade in May 1997 by purchasing tens of billions of dollars worth of bahts in the forward market at basically the spot exchange rate.
Second, in Section 4 I find evidence of a time-varying (and non-stationary) risk premium in the forward market, with this risk premium being apparently related to volatility in the spot market.
These techniques include forward market hedge, futures hedge, money market hedge, currency options, exposure netting and the use of official export/financing agencies.
Liquidity risk increases both because foreign borrowers may react collectively towards Norwegian banks to a greater extent than ordinary Norwegian depositors and because of the possibility of liquidity problems in the forward market where the currency is temporarily exchanged for NOK.

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