Forward Delivery

AAA

DEFINITION of 'Forward Delivery'

A delivery of the underlying asset at the date agreed upon in a forward contract. At the forward delivery, one party will supply the underlying asset and one will buy the asset. The terms and price of the asset was the one agreed upon at the onset of the contract or trade date.

INVESTOPEDIA EXPLAINS 'Forward Delivery'

The contract must include the security to be sold, the price at which it is to be sold, the date the payment is to be received and include any other terms of the trade. Forward contracts are normally used to hedge the party from negative price fluctuations in the underlying asset.

RELATED TERMS
  1. Forward Contract

    A customized contract between two parties to buy or sell an asset ...
  2. Variable Prepaid Forward Contracts

    An agreement to give a predetermined number of shares to a brokerage ...
  3. Forward Margin

    The difference between the spot rate and the estimated future ...
  4. Security

    A financial instrument that represents: an ownership position ...
  5. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  6. Contract For Differences - CFD

    An arrangement made in a futures contract whereby differences ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. Detecting Accounting Manipulation
    Fundamental Analysis

    Detecting Accounting Manipulation

  3. Interpreting Volume For The Futures ...
    Options & Futures

    Interpreting Volume For The Futures ...

  4. How can I find out which stocks also ...
    Options & Futures

    How can I find out which stocks also ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center