Long-Term Forward Contract

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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.
References in periodicals archive ?
Lord Adonis said:For Britain to get on with the job of delivering high-quality infrastructure that benefits everyone, you need more than just a commitment to invest you need long term forward plans and the maximum possible consensus.That is what the National Infrastructure Commission is here to promote.
CDT most recently approved a long term forward commitment for a permanent first mortgage of $4.4 million for the Ribicoff Cottages, a 55-unit multifamily housing development in New Haven, Connecticut.
At the heart of the NSEL fiasco was a practice at the exchange, where members were allowed to take long term forward contracts in commodities such as oilseeds, cereals and pulses, although the exchange was allowed to handle only spot contracts, similar to mandis where buyers and sellers exchange goods for money.