Definition for : Forward transaction
A forward transaction consists in buying or selling an asset for any date different from the Spot date. The price, the amounts, and the date are all fixed today, i.e. at the date of concluding a forward transaction. Can be forward currency transactions or forward Interest rate transactions. Also called forward contracts.
(See Chapter 49 Managing cash flows of the Vernimmen)
To know more about it, look at what we have already written on this subject