- Forward contracts are agreements to buy or sell an asset at a future date for a price agreed upon today.
- They are customized contracts between two parties, typically used by businesses to hedge against price fluctuations.
- Forwards are traded over-the-counter (OTC), meaning they are not standardized or traded on an exchange.
Hey folks, hope you're all good! So, I've been hearing a lot about something called "forward contracts" recently and I'm a bit confused. Can anyone shed some light on this topic for me? What are they exactly, how do they work, and why would I want to use one? Would really appreciate any advice or explanations you can give. Thanks!
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