definitions Forward market

Forward market

A market for forward contracts in which trades are made for future delivery according to an agreed-upon delivery date, exchange rate, and amount. A market for exchange of currencies in the future. Participants in a forward market enter into a contract to exchange currencies, not today, but at a specified date in the future, typically 30, 60, or 90 days from now, and at a price (forward exchange rate) that is agreed upon today.