An investment strategy that involves the buying of shares, commodities, money market instruments or currencies in expectation of a price rise or a future increase in demand. Of course, delivery will take place at a later date. This strategy represents a gamble on the current market price, i.e., the buyer anticipates the price to rise in the future and that he will then be able to sell at a profit. Investors capitalize on buying forward in order to take advantage of future and potential profits by purchasing at a lower price and selling at a higher price.
May 21, 2024
