Finance:Forward market

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Short description: Informal financial market

The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. It is mainly used for trading in foreign currencies, where the contracts are used to hedge against foreign exchange risk.[1][2] Commodities are also traded on forward markets. Examples include agricultural products such as rice,[3] and energy futures, such as oil and natural gas.[4][5] Transactions on a forward market are typically not standardized, and contracts are customised to the needs of the trading parties.[6][7] In contrast, standardized forward contracts are called futures contracts and traded on a futures exchange.[8][9]

See also

References

  1. Management. Arihant Publications. p. 395. ISBN 9326193527. https://books.google.com/books?id=I5Z-EAAAQBAJ. 
  2. Julian Gaspar; James Kolari; Richard Hise; Leonard Bierman; L. Murphy Smith (2016). Introduction to Global Business: Understanding the International Environment & Global Business Functions. Cengage Learning. p. 99. ISBN 9781305856226. https://books.google.com/books?id=lLkaCgAAQBAJ&pg=PA99. 
  3. Julian Roche (2014). The International Rice Trade. Elsevier Science. p. 193. ISBN 9781845692841. https://books.google.com/books?id=2fzJCgAAQBAJ&pg=PA193. 
  4. House of Commons Trade and Industry Committee (2005). Fuel Prices; Twelfth Report of Session 2004-05; Report, Together with Formal Minutes, Oral and Written Evidence. Stationery Office. ISBN 9780215024992. https://books.google.com/books?id=kQdq16hmE9AC&pg=PA211-IA2. 
  5. Risk Management in Commodity Markets; From Shipping to Agriculturals and Energy. Wiley. 2009. pp. 26–27. ISBN 9780470740811. https://books.google.com/books?id=13YIQjYxr44C&pg=PA26. 
  6. Suk Hi Kim; Kenneth A Kim (2014). Global Corporate Finance: A Focused Approach (2nd ed.). World Scientific Publishing Company. pp. 98–100. ISBN 9789814618021. https://books.google.com/books?id=vDM8DQAAQBAJ&pg=PA98. 
  7. Alexander Davidson (2009). How the Global Financial Markets Really Work. Kogan Page. p. 150. ISBN 9780749458218. https://books.google.com/books?id=ShY3_mtpO5kC&pg=PA150. 
  8. Jeff Madura (2015). International Financial Management. Cengage Learning. p. 73. ISBN 9781305840577. https://books.google.com/books?id=ImLrBwAAQBAJ&pg=PT100. 
  9. Vyuptakesh Sharan (2008). Fundamentals of Financial Management. Pearson Education. p. 457. ISBN 9788131723975. https://books.google.com/books?id=WCBlH0XDqqEC&pg=PA457.