Forward market

The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange.

It should not be confused with the futures market, as

Future contracts are traded in exchanges whereas a forward contract is traded over the counter.
The forward market is highly customized.
Though the forward market is not exchange traded, chances of parties defaulting are very low.

See also

Forward exchange market

Derivatives market

Derivative (finance)

Terms	Credit spread Debit spread Exercise Expiration Moneyness Open interest Pin risk Risk-free interest rate Strike price the Greeks Volatility
Vanilla options	American Bond option Call Employee stock option European Fixed income FX Option styles Put Warrants
Exotic options	Asian Barrier Basket Binary Chooser Cliquet Commodore Compound Forward start Interest rate Lookback Mountain range Rainbow Swaption
Combinations	Collar Covered call Fence Iron butterfly Iron condor Straddle Strangle Protective put Risk reversal
Spreads	Back Bear Box Bull Butterfly Calendar Diagonal Intermarket Ratio Vertical
Valuation	Binomial Black Black–Scholes model Finite difference Garman–Kohlhagen Margrabe's formula Put–call parity Simulation Real options valuation Trinomial Vanna–Volga pricing

Exotic derivatives

Other derivatives

Market issues

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.