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Forward contracts are contracts between two parties ? the buyers and sellers. Under the contract, a specified asset is agreed to be traded at a later date at a specified price. For example, you enter into a contract to sell 100 units of a computer to another party after 2 months at Rs. 50,000 per unit.
A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardized nature makes it particularly apt for hedging.
Adverb Her long hair fell forward as she bent to tie her shoes. He pushed the throttle forward. She took a small step forward. The narrative moves backward and forward in time.
Toward or at a place, point, or time in advance; onward; ahead: to move forward;from this day forward;to look forward. toward the front: Let's move forward so we can hear better.
On the expiration date, the contract must be settled. One party will deliver the underlying asset, while the other party will pay the agreed-upon price and take possession of the asset. Forwards can also be cash-settled at the date of expiration rather than delivering the physical underlying asset.