Forward cover


 

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Forward cover

The purchase in the cash market of the difference between what you are obligated to deliver in a forward contract and the amount of the asset you own. For example, if you agreed to sell 100,000 bushels of corn in September in a forward contract, but you only have 60,000, you need to purchase 40,000 to cover your obligation.



Forward cover

Similar Matches

Forward interest rate

Forward interest rate

Interest rate fixed today on a loan to be made at some future date.


Loss Carry Back (Carry Forward)

Loss Carry Back (Carry Forward)

A tax provision that allows operating losses to be used as a tax shield to reduce taxable income in prior and future years. Losses can be carried backward for up to three years and forward for up to 15 years under current tax codes.


Forward looking multiple

Forward looking multiple

A truncated expression for a P/E ratio that is based on forward (expected) earnings rather than on trailing earnings.


Forward rate

Forward rate

A projection of future interest rates calculated from either spot rates or the yield curve.


Forward differential

Forward differential

Annualized percentage difference between spot and forward rates.


Further Suggestions

Freight Forwarder
Expectations theory of forward exchange rates
Forward averaging
Forward sale
Forward rate agreement (FRA)
Carryforwards
Tax loss carryback, carryforward
Forward linkage
Forwarder
Forward premium
Forward premium
Forward foreign exchange rate
Forward discount
Forward pricing
Forward discount
Forward
Forward market
carry forward
Forward Fed funds
Range forward
Roll forward
forward dealing
Forward foreign exchange contract
Net operating loss carryforwards
Forward delivery


 
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