The FORWARD RATE used as a reference in a FORWARD RATE AGREEMENT or an INTEREST RATE FORWARD contract ; it can be considered the interest rate for a certain period […]
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FORWARD FREIGHT AGREEMENT
It is a principal-to-principal contract for betting on the price of a particular freight-route on a particular date. Shippers and ship owners use it as a hedge against a volatile […]
FORWARD INTEGRATION
A manufacturer buys its output distribution channels to achieve greater economies of scale or higher market share . A type of vertical integration .
FORWARD INTEREST RATE
For a loan beginning some time in the future, it uses a currently stated interest rate .
FORWARD LINKAGES
Connecting customers, producers and suppliers in a distribution chain.
FORWARD MARGIN
Commodity or currency spot price today minus the price on a set future date.
FORWARD MARKET
Commodity and currency markets hedge against sharp price fluctuations. Future, forward delivery market for commodities , currencies, and securities. Prices are agreed on today, setting the date of making the […]
FORWARD P/E
A company’s 12-month future estimate off-price-to-earnings ratio (P/E).
FORWARD PARITY
Unbiased predictor of impending spot exchange rates. Currency trading theory. Predicts forward exchange rates for any one currency.
FORWARD POINTS
The differential between a SPOT RATE and FORWARD RATE in the FOREIGN EXCHANGE markets. Forward points arise as a result of INTEREST RATE DIFFERENTIALS, market expectations related to currencies and […]
FORWARD PREMIUM
A FORWARD PRICE (or rate) for future delivery of an ASSET that is higher than the SPOT PRICE (or rate) for immediate delivery. See also FORWARD DISCOUNT .
FORWARD PRICE
The price quoted for future delivery of an ASSET under a FORWARD or FUTURE, comprised of the SPOT PRICE and a positive or negative COST OF CARRY ; a quoted […]
FORWARD PRICING
Contract or order budget negotiation preparation by projecting variable costs.
FORWARD PROCUREMENT
Using volume discounts or hedging against possible shortages. Stocking up beyond typical needs. Refer to hedging.
FORWARD RATE
(1) The rate quoted for future delivery of an ASSET, used in the calculation of FORWARDS and FUTURES. A quoted forward rate may reflect a FORWARD PREMIUM or FORWARD DISCOUNT […]
FORWARD RATE AGREEMENT (FRA)
A single period FORWARD contract on INTEREST RATES that does not involve an exchange of PRINCIPAL; at maturity the parties simply exchange the differential prevailing between the interest rate and […]
FORWARD START OPTION
An OVERTHECOUNTER COMPLEX OPTION that is contracted on trade date t to commence on forward date t+1, with the forward start date, STRIKE PRICE , and final maturity parameters established […]
FORWARD SUPPLY CONTRACT
Goods or services contract for a fixed, future period for delivery of specific quantities.
FORWARD SWAP
Fixed, future-dated arrangement for conducting a swap.
FORWARD TRADING
Commodities , currencies, and securities trade with deliveries and settlement at a future (forward) date done at current market prices. Known also as front running .
FORWARD TRANSACTION
With delivery set on a fixed future date, goods or services are bought or sold at a certain price.
FORWARD-LOOKING STATEMENT
A projection tool for managers based on current financial figures but does not display these same current financial figures. Projected future sales and expenses are shown, based on the financial. […]
FORWARD-LOOKING STUDY
Definitive statement about repetitive surveys of a population over a set period of time leading to a summarizing statistical survey.
FORWARDER’S AIR WAYBILL (AWB)
A receipt for the goods shipped with other cargo as one consignment . Consolidation is done to take advantage of better freight rates. Freight forwarder or consolidator issues it to […]
FORWARDER’S BILL OF LADING (B/L)
A receipt for the goods shipped with other cargo as one consignment , typically a full container. Consolidation is done to take advantage of better freight rates. Freight forwarder or […]