Investopedia

Short Date Forward

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Dictionary Says

Definition of 'Short Date Forward'

A forward exchange contract involving two parties that agree upon a set price to sell/buy an asset at a dated time in the future. A short date forward involves trading a currency at a specified spot date that is before the normal spot date.
Investopedia Says

Investopedia explains 'Short Date Forward'

Investors can use short date forward contracts to hedge risks or as a speculative investment vehicle. The matured value of a forward contract can be calculated by the difference between the delivery price and the underlying price of the security on that date.

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