Forward Contract
Definition
A customized, over-the-counter agreement to buy or sell a currency at a future date at a price agreed upon today.
Example
Corporations use forwards to hedge foreign currency receivables.
Related Terms
Frequently Asked Question
What is a Forward Contract in forex?
A Forward Contract is a customized, over-the-counter agreement to buy or sell a currency at a future date at a price set today. Unlike futures, forwards are not standardized or exchange-traded — they are private agreements between counterparties.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.