Forward Contract means it is an agreement to buy or sell a risky asset at a specified future period i.e. delivery date for a fixed price.The fixed price at the present moment is called "forward price".
Long forward contract:
An Investor who enters contract for purchase of this asset is called a long forward contract or to take a long forward position.
Short forward contract:
If an investor agrees to sell this asset with a short period of time then it is called "short forward contract or short forward position.
Forward contract exchange:
However, No money is paid at the time when a "forward contract is exchanged".
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