forward contract

简明释义

期货契约

英英释义

例句

1.The company entered into a forward contract to secure the price of oil for the upcoming year.

该公司签订了一份远期合同，以确保未来一年的石油价格。

2.The airline locked in ticket prices through a forward contract with fuel suppliers.

这家航空公司通过与燃料供应商签订远期合同锁定了机票价格。

3.A farmer signed a forward contract to sell his wheat at a predetermined price next season.

一位农民签订了一份远期合同，以在下一个季节以预定价格出售他的麦子。

4.A coffee shop owner entered a forward contract to buy coffee beans at a fixed price for the next six months.

一家咖啡店老板签订了一份远期合同，以固定价格购买接下来六个月的咖啡豆。

5.Investors often use a forward contract to hedge against currency fluctuations.

投资者通常使用远期合同来对冲货币波动的风险。

作文

In the world of finance and trading, various instruments are used to manage risk and ensure stability. One such instrument is the forward contract, which plays a crucial role in hedging against price fluctuations. A forward contract is an agreement between two parties to buy or sell an asset at a predetermined price on a specific future date. This type of contract is commonly used in commodities trading, foreign exchange, and even in financial markets involving stocks and bonds.The primary advantage of a forward contract is that it allows both buyers and sellers to lock in prices, thereby mitigating the uncertainty associated with market volatility. For example, consider a farmer who grows wheat. If the farmer is concerned that the price of wheat may drop by the time of harvest, he can enter into a forward contract with a buyer to sell his wheat at a fixed price. This ensures the farmer will receive a guaranteed income, regardless of future market conditions.On the other hand, buyers also benefit from forward contracts. Let’s say a bakery needs a steady supply of flour for its operations. By entering into a forward contract with a miller, the bakery can secure a stable price for flour, protecting itself from potential price increases. This predictability is vital for budgeting and financial planning.However, forward contracts come with their own set of risks. Since they are customized agreements between two parties, they are not traded on exchanges, which means there is a higher counterparty risk involved. If one party fails to fulfill the terms of the contract, the other party may face significant losses. Therefore, it is essential for participants in a forward contract to assess the creditworthiness of their counterparties before entering into such agreements.Another important aspect of forward contracts is that they are typically settled at maturity. This means that no money changes hands until the contract's expiration, when the actual asset is exchanged, or a cash settlement is made based on the difference between the agreed-upon price and the market price at that time. This characteristic differentiates forward contracts from futures contracts, which are standardized and traded on exchanges, allowing for daily settlements and reduced counterparty risk.In conclusion, forward contracts are powerful tools in financial markets that provide certainty and stability for both buyers and sellers. They serve as a hedge against price fluctuations, allowing parties to plan and budget more effectively. However, the risks associated with forward contracts, particularly counterparty risk, must be carefully managed. As the global economy continues to evolve, the importance of understanding and utilizing forward contracts will only increase, making them an essential component of risk management strategies in various industries.

在金融和交易的世界中，各种工具被用来管理风险并确保稳定。其中一种工具是远期合约，它在对抗价格波动方面发挥着至关重要的作用。远期合约是双方之间达成的协议，约定在特定的未来日期以预定价格买卖资产。这种类型的合约通常用于商品交易、外汇甚至涉及股票和债券的金融市场。远期合约的主要优势在于，它允许买卖双方锁定价格，从而减轻与市场波动相关的不确定性。例如，考虑一个种植小麦的农民。如果农民担心到收获时小麦价格可能会下跌，他可以与买方签订一份远期合约，以固定价格出售他的小麦。这确保了农民将获得保证收入，无论未来市场条件如何。另一方面，买方也能从远期合约中受益。假设一家面包店需要稳定的面粉供应来维持运营。通过与磨坊签订远期合约，面包店可以确保面粉的稳定价格，保护自己免受潜在的价格上涨。这种可预测性对于预算和财务规划至关重要。然而，远期合约也伴随着自身的一系列风险。由于它们是双方之间的定制协议，因此不在交易所交易，这意味着涉及更高的对手方风险。如果一方未能履行合同条款，另一方可能会面临重大损失。因此，参与远期合约的各方在签订此类协议之前，必须评估其对手方的信用worthiness。远期合约的另一个重要方面是，它们通常在到期时结算。这意味着在合同到期之前不会发生资金交换，而是在到期时根据约定价格与当时市场价格之间的差额进行现金结算或实际资产交换。这一特征使得远期合约与期货合约有所不同，后者是标准化的并在交易所交易，允许每日结算并减少对手方风险。总之，远期合约是金融市场中的强大工具，为买卖双方提供了确定性和稳定性。它们作为对抗价格波动的对冲，允许各方更有效地进行计划和预算。然而，与远期合约相关的风险，特别是对手方风险，必须谨慎管理。随着全球经济的不断发展，理解和利用远期合约的重要性只会增加，使其成为各行业风险管理策略的重要组成部分。