Buying Forward

An investment strategy that involves the buying of money market instruments or currencies in anticipation of a price rise or a future increase in demand. When there is anticipation or an expectation of a rise in security prices, or an increase in the demand levels of a particular currency, buying forward allows an investor to take advantage of future and potential profits by buying now, at a lower price, and selling when prices rise.


The opposite of buying forward is selling forward. If an investor believes that the price of a security or the demand of a currency is going to drop, selling forward can help the investor mitigate loss because he or she is selling now, while the price is still high as opposed to selling at a loss when prices drop.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • forward trading — UK US noun [U] STOCK MARKET ► the activity of buying or selling currencies, commodities (= substance or product that can be traded in large quantities), etc. to be given to the buyer in the future …   Financial and business terms

  • Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

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  • forward market — The informal (nonexchange) trading of foreign exchange or commodities to be delivered at a future date. Contracts for forward delivery are not standardized. Instead, the delivery time and amount are negotiated by the parties. American Banker… …   Financial and business terms

  • forward — I. adjective Etymology: Middle English, from Old English foreweard, from fore + weard ward Date: before 12th century 1. a. near, being at, or belonging to the forepart b. situated in advance 2. a. strongly inclined ; ready …   New Collegiate Dictionary

  • Forward market — A market in which participants agree to trade some commodity, security, or foreign exchange at a fixed price for future delivery. The New York Times Financial Glossary * * * forward market forward market ➔ market1 * * *    Markets that deliver… …   Financial and business terms

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