19th October 2018


Is forward contract a financial instrument?

In finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or to sell an asset at a specified future time at a price agreed upon today, making it a type of derivative instrument.

Subsequently, one may also ask, can you sell a forward contract?

Futures and forwards both allow people to buy or sell an asset at a specific time at a given price, but forward contracts are not standardized or traded on an exchange. They are private agreements with terms that may vary from contract to contract. Also, settlement occurs at the end of a forward contract.
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