Buying Forward

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Dictionary Says

Definition of 'Buying Forward'

An investment strategy that involves the buying of money market instruments or currencies in anticipation of a price rise or a future increase in demand. When there is anticipation or an expectation of a rise in security prices, or an increase in the demand levels of a particular currency, buying forward allows an investor to take advantage of future and potential profits by buying now, at a lower price, and selling when prices rise.
Investopedia Says

Investopedia explains 'Buying Forward'

The opposite of buying forward is selling forward. If an investor believes that the price of a security or the demand of a currency is going to drop, selling forward can help the investor mitigate loss because he or she is selling now, while the price is still high as opposed to selling at a loss when prices drop.

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'Buying Forward'

  • CFA Level 1 Study Guide - Securities Markets - Buying on Margin ...

    http://www.investopedia.com/exam-guide/cfa-level-1/securities-markets/buying-on-margin-maintenance-margin.asp
    ... 12.5 Exchange Market Characteristics; 12.6 Short Selling; 12.7 Buying on Margin
    and ... Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward Rates ...

  • Variable Prepaid Forward Contract: Scam Or Safety Net?

    http://www.investopedia.com/articles/stocks/09/variable-prepaid-forward-contract.asp
    Variable Prepaid Forward Contract: Scam Or Safety Net? ... They all engaged in complex
    stock sales know as variable prepaid forward contracts. ...

  • How Long Will This Buying Opportunity Last?

    http://stocks.investopedia.com/stock-analysis/2011/How-Long-Will-This-Buying-Opportunity-Last-WINN-WFC-BAC-C0928.aspx
    ... (To help you pick stock for your portfolio, read 4 Tips For Buying Stocks In ... Trading
    at around $25 a share, WFC is selling at less than 8 times forward earnings ...

  • Four Stocks Insiders Are Buying Right Now

    http://stocks.investopedia.com/stock-analysis/2011/Four-Stocks-Insiders-Are-Buying-Right-Now-RCL-CCL-BSX-MS-KMR0809.aspx
    ... Taking Stock A big name financial institution experienced some sizable insider buying
    last week. ... With a price-to-book ratio of 0.63 and a forward P/E of 6.5 ...

  • Companies Buying Their Own Shares

    http://stocks.investopedia.com/stock-analysis/2010/Companies-Buying-Their-Own-Shares-DOX-GPN-IBM-MVC-ORB0503.aspx
    ... Companies Buying Their Own Shares. ... In the group, the lowest price to earnings is
    IBM (NYSE:IBM), sitting around 12, but looking into the forward P/E, IBM has a ...

  • Caterpillar's Decline Puts Buying In Mind

    http://stocks.investopedia.com/stock-analysis/2011/Caterpillars-Decline-Puts-Buying-In-Mind--CAT-BUCY-JOYG-DE-CNH0614.aspx
    ... want to take a serious look at this stock to see if it's worth buying at these ... month
    PE is just over 17, with trailing 12-month EPS of $5.63, its forward PE at ...

  • Fitch's Downgrade Of Emerging Asia Is A Buying Signal

    http://stocks.investopedia.com/stock-analysis/2012/Fitchs-Downgrade-Of-Emerging-Asia-Is-A-Buying-Signal-AIA-ASEA-VNM-EWS0102.aspx
    ... Fitch's Downgrade Of Emerging Asia Is A Buying Signal. ... Asia Pacific (ARCA:GMF) now
    sit closer to their 52-week lows and trade for single digit forward price to ...

  • Stocks To Buy This Week

    http://stocks.investopedia.com/stock-analysis/2011/Stocks-To-Buy-This-Week-SBS-INFA-BOX-MTZ0512.aspx
    ... With that being said, I feel there is more upside potential for BOX and buying
    near $16 gives the stock an attractive forward P/E ratio of 7.2. ...

  • Strong Stocks Off Their Highs

    http://stocks.investopedia.com/stock-analysis/2011/Strong-Stocks-Off-Their-Highs-VRSK-KEM-ZOLL-TV-TMRK0127.aspx
    ... The forward P/E ratio of 20.8 is acceptable and with such a bullish chart and exposure
    to a strong niche sector, the stock is a buying opportunity. ...

  • Fearful Investors Provide Buying Opportunities

    http://stocks.investopedia.com/stock-analysis/2011/Fearful-Investors-Provide-Buying-Opportunities-TCK-BAC-GS-BRK-A-BRK-B-ZINC0926.aspx
    ... The business trades at 5.3 times forward earnings and less than 4.5 times EV/EBITDA. ...
    (For more information, check out 4 Tips For Buying Stocks In A Recession.). ...

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