Difference between revisions of "Forward contracts"

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[[Category:Asian Exchanges]]
[[Category:Definitions]]

Revision as of 13:45, 10 July 2008

A forward contract is a private, cash-market agreement between a buyer and seller for the future delivery of a commodity at an agreed upon price. Unlike futures contracts, forward contracts are not standardized and not transferable.[1] A clearing house does not stand betweenbuyer and seller to guarantee performance of the forward contract.