Forward Contract
Definition
An over-the-counter agreement to buy or sell an asset at a set price on a future date. Customizable but illiquid; counterparty risk.
Example
An airline locks in jet fuel prices via forward contracts with refiners.
An over-the-counter agreement to buy or sell an asset at a set price on a future date. Customizable but illiquid; counterparty risk.
An airline locks in jet fuel prices via forward contracts with refiners.