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What is Understanding Forward Contracts Explained about?

Forward contracts are privately negotiated agreements between two parties to exchange an asset at a predetermined price on a future date. A forward contract specifies the delivery of an asset at a specified price on a specified future date. The buyer and seller of the asset agree to the price at contract initiation. Forward contracts are settled by physical or cash delivery of the asset on the expiration date.

Author

Amit Kumar

Language

EN