Forward

{
  "id": "MLC-T-INS-001578",
  "term": "Forward",
  "field": "Insurance and risk management",
  "definition": "A customized, private contract between two parties to buy or sell an asset at a specified price on a future date, used as a risk management tool. Insurers and multinational corporations use forwards, particularly currency forwards, to hedge against adverse fluctuations in foreign exchange rates. For example, an insurer can use a forward contract to lock in an exchange rate for paying a large future claim denominated in a foreign currency, thereby eliminating uncertainty about its ultimate cost in the home currency.",
  "url": "https://mlchart.com/terminology/insurance/forward/"
}