Jethro's Braindump

Forward Contracts

A forward contract is a contract between two parties on the delivery of an asset at a certain time in the future, the maturity of the contract, at a certain price. This price is fixed at the time the contract is entered. It is a financial derivative.

these contracts are typically not traded on exchanges, but rather over the counter, for example between a financial institution and its counterparty. There is an obligation to fulfill this contract at maturity.