Thursday, 18 April 2019

Forward Contracts

In finance , forward contracts are the customized or tailor-made agreements between two parties to sell or buy a particular asset at an agreed price on specific future date.
       Forward contracts are called Forwards simply.
Forwards do not trade on stock exchanges.They are made over-the-counter (OTC). Forwards are also known as Over-the-counter Derivatives.
     In forward contracts, price, delivery date etc are customized according to the parties to the contract. In future contracts price, delivery date etc are standardized.

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