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A.naresh posted an Question
June 05, 2020 • 01:25 am 30 points
  • UGC NET
  • Management

Are derivative forward contract and forex forward markets under same concept?

are derivative forward contract and forex forward markets under same concept?

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    Ronak kumari upadhyay Best Answer

    Dear student A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are used for trading a range of instruments, but the term is primarily used with reference to the foreign exchange market. It can also apply to markets for securities and interest rates as well as commodities. so yes they both are under the same concept. hope now it is clear to you.

  • Dr. ashish kumar suri

    Forex or foreign exchange market is a place where you can exchange one currency with other. There are currency derivatives also which comes under the derivative concept. A derivative may be of equity, commodity, currency, interest rates etc. You can refer the following link for more clarification https://www.investopedia.com/terms/f/forwardmarket.asp

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