Forward contract
The glossary of statistical terms, published by the Organisation for Economic Co-operation and Development (OECD), states: ‘A forward contract is an unconditional financial contract that represents an obligation for settlement on a specified date; at the inception of the contract, risk exposures of equal market value are exchanged and hence the contract has zero value; some time must elapse for the market value of each party’s risk to differ so that an asset (creditor) position is created for one party and a liability (debtor) position for the other. Forward contracts are typically, but not always, settled by the payment of cash or the provision of some other financial instrument rather than the actual delivery of the underlying item and therefore are valued and traded separately from the underlying item.’
[edit] Related articles on Designing Buildings
- Contract.
- Credit.
- Debt.
- Debtor.
- Liability.
- Obligation.
- Procurement.
- Tender process.
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Building Regulations and Building Safety Act
CIOB publishes free advice for non-domestic clients.
Building Safety Newsletter from MHCLG.
An extraordinary record of steel engineering worldwide.
Households living near new pylons to save on bills.
ECA warns growth must not outpace grid capacity or skills.
The role of the client and decision making
CIOB response to built environment professions call for evidence.
Construction's sustainability reporting revolution
Tracking upfront embodied carbon with digital tools.
ECA welcomes procurement reforms
Public spending must back British jobs and skills.
Campaigning for Edinburgh: the Cockburn Association 1875-2049
The role of the civic voice in protecting character. Book review.
CIOB photography competition is open for entries.
ECA Edmundson apprentice of the year award
Finalists announced.
Major new study exposes serious knowledge gaps.