A forward contract is a flexible derivative contract in which two parties agree to buy or sell an asset at a predetermined price at a future date. Forward contracts can be customised to a particular product, quantity, and delivery date.
Assume you are a farmer who wants to sell wheat at the present pricing of Rs. 18, but you are aware that wheat prices are expected to fall in the coming months. In this scenario, you sign a contract with a grocery store to sell them a specific amount of wheat for Rs. 18 over the course of three months.
A derivative instrument is a forward contract. This is an agreement between two investing parties to buy or sell an underlying asset or security at a future date at a certain rate and in the predetermined amount.
A forward contract is an agreement between two parties to trade a predetermined quantity of an asset for a predetermined price at a future date.
Forward contracts have the following benefits: 1) They can be matched against the exposure period as well as the amount of money at stake. 2) Forwards are custom-made and can be created for any amount and length of time. 3) It provides a complete barrier. 4) Forwards are traded over-the-counter.
Learner's Ratings
4.8
Overall Rating
87%
7%
4%
1%
1%
Reviews
J
Jay Vyas
5
This is just awesome course. I gained so much knowledge about Import-Export Business by learning this course.
LearnVern, you are doing an awesome job by teaching for free.
G
gopi krishna acharya
5
Amazing Practical approach to Export and Import Trading. Should be most useful for beginners.
G
gopi krishna acharya
5
Most Simple , Lucid explanation of intricate procedures involved in the Business of Exports N Imports. Thanks to Sri Kunal Sir and the Architects of the Course.
Y
Yadvendra Kumawat
5
कोर्स के अंदर जो आप प्रक्रिया बताते हैं उसे कैसे संबंधित दस्तावेज भी बताएं और दस्तावेजों में को कैसे भरना है इससे संबंधित भी वीडियो बनाएं बहुत अच्छा होगा
M
Mohammad Altaf
5
I wants to write lots of things for appreciate but firstly I need to confirm one doubt. But it's very useful.
D
Dinesh Kumar
5
यह कोर्स मेरे लिए उतना ही प्रभावशाली और जरूरी है जैसे एक इंसान को सांस की जरूरत होती है
L
Limbasiya Dax
5
Very good 👍🏻😊
H
Harshvardhan Maharnur
5
nice
D
Dinesh Kumar
5
Mere Hisab Se Isase Accha Course Ho Hi Nahi Sakata Etana Details Me Aur Etena Acchi Tarah Se Samajhaya Gaya H Ki Age Kucch Kahane Ke Liye Nahi Bachata Agar Ek Shabd Me Kahun To Superb.
R
Ramesh Solanki
5
Awesome, I want to know about exim word during questionaire what it indicates ?
Share a personalized message with your friends.