Common Contracts
1 similar Forward Contract contracts
Forward contract example pdfForward Contract • March 20th, 2021
A forward contract, often shortened to just forward, is a contract agreement to buy or sell an assetAsset ClassAn asset class is a group of similar investment vehicles. Different classes, or types, of investment assets – such as fixed-income investments - are grouped together based on having a similar financial structure. They are typically traded in the same financial markets and subject to the same rules and regulations. at a specific price on a specified date in the future. Since the forward contract refers to the underlying asset that will be delivered on the specified date, it is considered a type of derivativeDerivativesDerivatives are financial contracts whose value is linked to the value of an underlying asset. They are complex financial instruments that are.Forward contracts can be used to lock in a specific price to avoid volatilityVolatilityVolatility is a measure of the rate of fluctuations in the price of a security over time. It indicates the level of risk associated with
