forward contract
- An agreement made privately where a purchaser promises to buy an item, which could be a certain quantity of a commodity, security, or currency, at a fixed cost on a specific future date
- The company entered into a forward contract to buy wheat at a fixed price six months from now to hedge against possible price increases.
- To secure her investment, the investor purchased euros in a forward contract, to be delivered at a specified price on a specific date in the future.
- The manufacturer protected its budget by entering a forward contract to purchase raw materials at a set price in a year's time.
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