Forward contract has a particular significance in relation to IG's platform. Here, we define forward contract in general investing and explain what it means to you when trading with IG.
A forward contract is a contract that has a defined date of expiry. The contract can vary between different instances, making it a non-standardised entity that can be customised according to the asset being traded, expiry date and amount being traded.
Forward contracts have an agreed expiry on them, but that does not mean that they have to be kept open for the duration. Most forward contracts can be closed early, if you want to limit losses or take profits.
We offer forward contracts as an alternative to cash CFDs. With these trades, the funding required to keep your position open until it expires is included within the spread, as opposed to being levied each day.