forward trade - Investment & Finance Definition
An agreement to trade financial instruments at some time in the future. For foreign exchange, a forward trade creates a forward exchange rate, which is the price that someone is willing to pay in the future to purchase a currency. Forward trades frequently are used in the foreign exchange market, although they apply across investment groups.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.