Forward contract definition

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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.

With IG

We offer forward contracts and bets as an alternative to cash CFDs and daily funded bets. 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.

Visit our education section

Find out more about forward contracts in our education section.

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.