# Forward Contract

*Derivatives & Options — Finicade finance glossary*

A private agreement to trade an asset at a set price on a future date — like a futures contract but bespoke and off-exchange. More flexible, but you carry the risk the other side won't pay up.

**Also known as:** forward

**Related terms:** [Futures Contract](https://finicade.com/glossary/futures-contract), [Cost of Carry](https://finicade.com/glossary/cost-of-carry), [Counterparty Risk](https://finicade.com/glossary/counterparty-risk)

**Taught in:** Charter Climb — Derivatives: Forwards & Futures

Source: https://finicade.com/glossary/forward-contract