What is Forward contract?
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Answer / abhijit k
these are the contracts whereby two parties agrees to buy
or sell specific instrument or currency at a predetermined
price and date whatever may be the price in future. these
contracts are similar to futures contracts, only difference
is these are not standardised.
| Is This Answer Correct ? | 17 Yes | 0 No |
Answer / palash paul
it is an agreement to buy or sell an asset on a specified
date for a specified price.one of the parties to the
contract assumes a long position and agrees to buy the
underlyning asset on a certain specified future date for a
certain specified price.
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / rajesh
It is an agreement to buy or sell the commodities in the
future date agreed upon today
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / sundara vadivu
A contract for the delivery of a commodity, foreign
currency, or financial instrument at a price specified now,
with delivery and settlement at a specified future date.
Although similar to a future contract, it is not easily
transferred or canceled.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / amod kumar
FORWARD CONTRACTS ARE SAME AS FUTURE CONTRACT. AN AGREEMENT
TO BUY OR SELL SOMETING IN FUTURE AT A PREDETERMIND PRICE.
FUTURE CONTRACTS ARE ENTERED IN EXCHANGE AND FORWARD
COTRACT ARE TAILOR MADE CONTRACT ENTERED OUTSIDE THE
EXCHANGE.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / raghu
It is a contract entered with banker in order to purchase a
currency in future period at apredetermined price .
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / jayanta
forward contract is also called as over the trade counter
(OTC) and it is customised contract terms and it is less
liquid and its settlement happens at the end of period.
| Is This Answer Correct ? | 0 Yes | 4 No |
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