Forward Commitment

Forward commitment is a pledge to provide a commercial loan at a future date.

A contractual pledge to complete a transaction in the future is known as a forward commitment. The product or goods being sold, the price, the date of payment, and the date of delivery are all specified in a forward commitment. A contractual agreement between two parties to carry out a planned transaction is referred to as a forward commitment.

Forwards, futures, and swaps are all examples of forward commitments. A forward contract is a commitment to buy or sell a commodity at a certain price at a future date. The linear reward function of the forward contract includes both upside and downside risk.


onEntrepreneur is an online magazine centered on the world of business, entrepreneurship, finance, marketing, technology and much more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *