Forward Contract
A forward contract is a customized OTC agreement to buy or sell an asset, rate, or currency at a set future date and price.
Forward exchange contract, forward-rate agreement, forward-forward rate, and forward-margin terms.
Forward Contracts, Rates, and FX Hedges is the financial-instruments landing page for futures contracts, forward contracts, index futures, rate futures, currency futures, commodity futures, delivery, carry, contango, roll yield, and forward pricing. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.
Use this page when a futures or forward contract changes future delivery, settlement, hedge exposure, or pricing basis. Use the parent Futures, Forwards, and Contracts page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.
Use the table below to move from this landing page into the term page that best matches the instrument evidence.
| Term | Use it for |
|---|---|
| Forward Contract | Forward Contract connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Forward Exchange Contract (FEC) | Forward Exchange Contract (FEC) connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Forward Exchange Rate | Forward Exchange Rate connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Forward Forward Rate | Forward Forward Rate connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Forward Margin | Forward Margin connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Forward Premium | Forward Premium connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Forward-Rate Agreement (FRA) | Forward-Rate Agreement (FRA) connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
| Variable Prepaid Forward Contract | Variable Prepaid Forward Contract connects future settlement, delivery, carry, margin, or forward-pricing mechanics to exposure management. |
A business expecting to buy a commodity can use a long futures position to reduce the risk of a future price increase.
Forward Contracts content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A forward contract is a customized OTC agreement to buy or sell an asset, rate, or currency at a set future date and price.
A forward exchange contract locks in a future currency exchange rate, helping businesses hedge foreign-exchange cash flows.
A forward exchange rate is the agreed rate for exchanging currencies on a future settlement date.
Forward Forward Rate is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
Forward Margin, also referred to as Forward Points, represents the difference between the spot rate and the forward rate in foreign exchange trading.
A forward premium occurs when a currency's forward exchange rate is higher than its spot rate.
A forward-rate agreement is an OTC contract that locks in an interest rate for a future borrowing or lending period.
A variable prepaid forward contract lets a shareholder receive cash upfront while agreeing to deliver shares or cash later based on stock performance.