What does Forward Delivery mean?
Delivery at a future date, Forward delivery can be defined as the delivery of the underlying asset at a future date. The underlying asset may be a commodity, currency or security as specified in a forward contract.
Futures Knowledge Explains Forward Delivery
The delivery date and place together with exact quantity, specification and price are agreed upon and mentioned the terms of the contract. On delivery date, the seller will deliver the underlying asset and the buyer will pay for the same as per terms of forward contract. Forward delivery in a forward contract is similar to future delivery in a futures contract. The buyer of such a contract is said to hold a ‘long’ position and the seller is said to hold a ‘short’ position.