Forward market

The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange.

It should not be confused with the futures market, as

Future contracts are traded in exchanges whereas a forward contract is traded over the counter.
The forward market is highly customized.
Each party has to deal with counterparty risk, unlike exchange-traded futures where the contracts are renovated.

Terms	Credit spread Debit spread Exercise Expiration Moneyness Open interest Pin risk Risk-free interest rate Strike price the Greeks Volatility

Vanilla options	Bond option Call Employee stock option Fixed income FX Option styles Put Warrants

Exotic options	Asian Barrier Basket Binary Chooser Cliquet Commodore Compound Forward start Interest rate Lookback Mountain range Rainbow Swaption

Combinations	Collar Fence Iron butterfly Iron condor Straddle Strangle Covered call Married put Risk reversal

Spreads	Back Bear Box Bull Butterfly Calendar Diagonal Intermarket Ratio Vertical

Valuation	Binomial Black Black–Scholes model Finite difference Garman-Kohlhagen Margrabe's formula Put–call parity Simulation Real options valuation Trinomial Vanna–Volga pricing

Swaps

Exotic derivatives

Other derivatives

Market issues

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Forward market

See also