forward contract

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Forward contract

A contract that specifies the price and quantity of an asset to be delivered in the future. Forward contracts are not standardized and are not traded on organized exchanges.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

forward contract

An agreement between two parties to the sale and purchase of a particular commodity at a specific future time. Although forward contracts are similar to futures, they are not easily transferred or canceled. Thus, they are not liquid.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Forward contract.

A forward contract is similar to a futures contract in the sense that both types of contracts cover the delivery and payment for a specific commodity at a specific future date at a specific price.

The difference is that a futures contract has fixed terms, such as delivery date and quantity, and it's traded on a regulated futures exchange.

A forward contract is traded over the counter and all details of the contract are negotiated between the counterparties, or partners to the agreement.

The price specified in the forward contract for foreign currency, government securities, or other commodities may be higher or lower than the actual market price at the time of delivery, known as the spot price.

But the participants have locked in a price early specifically so they know what they will receive or pay for the product, eliminating market risk.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

forward contract

see FUTURES MARKET.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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In this section, we will provide the security analysis of the proposed scheme, and show that it can achieve message confidentiality, message authentication and integrity, identity privacy and traceability, forward security, replay attack and impersonation attack resistance.
Bravo Company transitioned to a company wedge formation with the two advance guard platoons trailing the forward security element (FSE) platoon.
As the marches slowly moved forward security forces were nowhere to be seen.
proposed a one-way Hash based low-cost authentication protocol [30] with forward security and analyze its efficiency but the computation load was not taken into consideration.
In this connection Interior Ministry has forward security plan to four provinces after suicide blasts in Dera Adam Khel and Buddha Beer so that proper security measures could be taken for Eid Ghas, Mosques and other crowded places of four provinces of Pakistan.
A sampling of topics: improved genetic feedback algorithm-based network security policy framework, a robust particle filter or people tracking, power control based on routing protocol in wireless sensor networks, cloud compufting research and development trend, decision tree applied in web-based intrusion detection system, digital DC resistance tester, the theory and empirical research of value-added positioning based on relational value, management strategies of network users oriented to the whole world, a wireless sensor network-based green marketplace for electrical appliances, analysis and improvement of a secure proxy signature scheme, clustering key management of forward security, and traffic reduction in hybrid service discovery protocol in mobile ad-hoc grid.
(15) proposed a group signature scheme with forward security. However, G.
I am very confident, we will carry forward security of the Commonwealth Games without any hitch," he added.
and his secretariat to push forward security cooperation and coordination
In doing so, he shows that Canada's decisions to access nuclear weaponry were consistent with its national interest (necessity to work within an alliance or coalition, and maintaining forward security and relative military autonomy) and thus commensurate with the roles it had undertaken to play in the defense of North America and its NATO allies.

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