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Glite Dictionary
forward transaction

forward transaction

7.9
An agreement to buy or sell something for future delivery at a set price
  • noun
  • Specialized
translation icon : transacción a plazo
  • Many companies use forward transactions to hedge against price fluctuations in raw materials.

Examples

  • A forward transaction allows both parties to lock in prices for future delivery.

  • The contract specified that the forward transaction would be settled in six months.

  • The company entered into a forward transaction for oil.

  • Many investors prefer forward transactions to spot trading.

  • A forward transaction allows both parties to lock in prices for future delivery.

  • The contract specified that the forward transaction would be settled in six months.

  • Many companies use forward transactions to hedge against price fluctuations in raw materials.

Synonyms

future
vsforward transaction
  • Specialized
76 7.9

A contract to buy or sell something later at a fixed price

is a longer phrase used instead of the shorter term
futures
vsforward transaction
  • Specialized
8 6.3

An agreement to buy or sell something later at a fixed price

is a general agreement for delivery later rather than a market-traded contract

Antonyms

spot market
  • Specialized
2 5.1

A place where people buy and sell things like oil or currency to be delivered right away

How Immediate

spot market
  • Specialized
2 5.1
oil future
  • Specialized
4 6.6
forward transaction
  • Specialized
7.9

Surface Forms

forward transaction singular
forward transactions plural

Morphology

forward + transaction

The element 'forward' clearly marks a temporal/future orientation and 'transaction' denotes a commercial trade, so a B1 learner who knows both constituents can infer it refers to a trade arranged for the future. However, the precise contractual/financial sense (e.g., price fixed now for future delivery) is technical and not fully predictable from the parts alone, so the expression is only partially transparent.

Etymology

Forward transaction comes from a simple trading picture: imagine a farmer and a baker agreeing now to sell wheat later at a fixed price. The word forward points to delivery in the 'future' and transaction is the sale, so the phrase means an agreement that 'locks in' a price for future delivery.