Meaning 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
More terms such as Forward cover in Dictionary F.
- Definition Financial Pyramid:
- Examples that spreads investor's risks across low-, medium-, and high-risk vehicles. The bulk of the assets are in safe, low-risk investments that provide a predictable return (base of the pyramid). At forward cover definition.
- Definition Floating-Rate Note (FRN):
- Examples Note whose interest payment varies with short-term interest rates forward cover explain.
- Definition Future Value:
- Examples The amount of cash at a specified date in the future that is equivalent in value to a specified sum today forward cover what is.
- Definition Flexible Expenses:
- Examples Expenses for an individual or corporation that can be adjusted or completely dispessed with, e.g., luxury goods forward cover meaning.
- Definition Floater:
- Examples A bond whose interest rate varies with the interest rate of another debt instrument, e.g., a bond that has the interest rate of the Treasury bill +.25 forward cover abbreviation.
