Forward market

 ( Financial Markets ) 

The forward market is the informal over-the-counter financial market by which Forward contract are entered into. It is mainly used for trading in foreign currencies, where the contracts are used to hedge against foreign exchange risk.

(2025). 9781305856226, Cengage Learning. . ISBN 9781305856226

Commodities are also traded on forward markets. Examples include agricultural products such as rice,

Julian Roche (2025). 9781845692841, Elsevier Science. . ISBN 9781845692841

and energy futures, such as oil and natural gas.

House of Commons Trade and Industry Committee (2025). 9780215024992, Stationery Office. . ISBN 9780215024992

(2025). 9780470740811, Wiley. . ISBN 9780470740811

Transactions on a forward market are typically not standardized, and contracts are customised to the needs of the trading parties.

(2025). 9789814618021, World Scientific Publishing Company. . ISBN 9789814618021

Alexander Davidson (2025). 9780749458218, Kogan Page. . ISBN 9780749458218

In contrast, standardized forward contracts are called and traded on a futures exchange.

Jeff Madura (2025). 9781305840577, Cengage Learning. . ISBN 9781305840577

Vyuptakesh Sharan (2025). 9788131723975, Pearson Education. . ISBN 9788131723975

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See also

• Forward exchange market

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