Q » Define forward contracts.

06 Dec, 2025

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A » Forward contracts are customized agreements between two parties to buy or sell an asset at a specified future date for a price agreed upon today. Unlike standardized futures contracts, forward contracts are traded over-the-counter and are not subject to exchange regulations, which allows for greater flexibility but also introduces counterparty risk. These contracts are commonly used in hedging and speculative strategies in financial markets.

Michael

06 Dec, 2025

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All Other Answer

A »A forward contract is a customized, over-the-counter agreement between two parties to buy or sell an asset at a specified price on a specific date. It is a binding contract that obligates both parties to fulfill the transaction, regardless of the market price at the time of delivery.

David

06 Dec, 2025

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