FORWARD CONTRACT
\fˈɔːwəd kˈɒntɹakt], \fˈɔːwəd kˈɒntɹakt], \f_ˈɔː_w_ə_d k_ˈɒ_n_t_ɹ_a_k_t]\
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A commodity or financial instrument bought or sold at market or spot price today by binding contract. It is delivered on a stated future, or forward, date. This settles the contract. In contrast, a futures contract is only a formal promise. Known also as cash contract.
By Henry Campbell Black
