Forward contract

{
  "id": "MLC-T-INS-001579",
  "term": "Forward contract",
  "field": "Insurance and risk management",
  "definition": "A customized, private agreement between two counterparties to purchase or deliver an asset at a predetermined price on a future date. Unlike standardized futures contracts, forwards are not traded on an exchange, exposing parties to counterparty credit risk if one side defaults on the obligation. These contracts are a common tool for hedging against price fluctuations in commodities, currencies, and interest rates.",
  "url": "https://mlchart.com/terminology/insurance/forward-contract/"
}