Question

Explain forward delivery contracts at the
stock exchange.

Answer 1

Explanation:

Understanding Forward Delivery

A forward contract is a contract between two parties to buy or sell an asset at a specified price on a future date. Forward contracts are used for hedging or speculation. ... When the contract settles in delivery of the underlying asset, that final stage is called forward delivery.

Answer 2

Answer:

Unlike standard futures contracts, a forward contract can be customized to any commodity, amount and delivery date. A forward contract settlement can occur on a cash or delivery basis. When the contract settles in actual delivery of the underlying asset, that final stage is called forward delivery.