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%
8%
5%
0%
0%
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.
P
prabhat sharma
5
how many companies of import and export are hiring ? please provide the list and is it possible to start it without office as an individual ?
N
Navghanji Sorabji Thakor
5
Nice
C
Captain Marvel
5
Kunal Dugad Sir ! You nice learn to Import And Export for Free Of Cost - Thanks Kunal Dugad Sir and Learvern Team !
M
Mr Asad
5
our first question is Blance of trade?
its means when you start your international trde to another country so you have a conttact a banl of finance instituions for money to devlope a products this is
M
Mahant Burman
5
Its Very Important For a Person who is Doing a Professional Course Have a depth knowledge and real world experience a part of book's knowledge.
S
sanjiv chouhan
5
sir saste mai buyer ka data kaise uper kre,iska koi solution hai to plz btaiye
R
Raj chauhan
5
what a way of teaching, love this course, THANK YOU SO MUCH SIR FOR MAKING SUCH A GREAT COURCES.
A
Ajay Kumar
5
I have taken another courses on the subject but this is the best course I have gone through. Mr Duggal has explained in such a way that even a new learner can understand very well. Recommended.
S
Subhadip Chakraborty
5
This course has helped me a lot to gain a good quality of knowledge that I can use in my future job opportunities.
Share a personalized message with your friends.