Forward Market (Noun)
Meaning
A commodity exchange where futures contracts are traded.
Classification
Nouns denoting man-made objects.
Examples
- Investors in the forward market bet on future prices of oil by buying or selling contracts.
- Companies can lock in future revenue streams by selling commodities on the forward market.
- Producers of corn can mitigate risk by trading in the forward market.
- Buying and selling on the forward market allows participants to hedge against price fluctuations.
- Traders can use the forward market to gamble on future price movements in wheat and soybeans.