Long-term forward contracts

Contracts that state exchange rate at which a specified amount of a particular currency can be exchanged at a future date (more than one year from today).

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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Long-Term Forward Contract

References in periodicals archive ?

In response," he said, "the international brewing industry placed long-term forward contracts on the assumption that beer output would continue to rise.

Joh. Barth & Sons see tough future for hops

The basic strategy calls for entering into long-term forward contracts for physical delivery with big grain suppliers such as Minneapolis-based Cargill Inc.

Food firms hedge costs

Sure, SAA would not have locked in the predictability of exchange rates for as long, but it would have mitigated the potential accounting impact of marking-to-market such long-term forward contracts.

Risk management in isolation is risky: to avoid unintended consequences of their decisions, treasurers need to apply the same partner-with-the-business mentality for risk management as they do for other activities and not treat it as an isolated treasury function