Forward contract introduction | Finance & Capital Markets | Khan Academy

Forward Contract Introduction. Created by Sal Khan.

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Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.

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[onfire]

Your drawings are pretty. Just thought you should know that. Also, thank you for the explanation.

[GadeaOne]

im here because my professor failed to explain this in the classroom. SMH.

[Entelex]

A simple yet elegant, precise and understandable treatise on forward contracts which are the basis of futures commodity contracts and why the maligned "speculators" actually provide an extremely valuable service to producers and consumers.

[tabishkhan]

Everything in this video is perfect :) Thank you for the explanation :)

[joryrox]

class ! Fun to watch
I love the why you breaks these stuff in a very unique interesting way ..

Bravoooo

[Astrojoy]

This explanation of a "Forward Contract" was so comprehensive and compact that my 7 year old can NOW explain it to someone else!

[madkaay]

this 3 minutes video managed to explain what a professor at the university of Manchester couldn't do in two two-hours lectures.

[LECityLECLEC]

Did Sal rlly drop that LOL the devotion. I love this guy!

[luckydogvegas]

Nice video, you are providing a wonderful service to people all over the world! Keep up the good work.

[MeDavidGusta]

"The future is now, old man".... someone needs to say it...

[kevingu]

Crystal clear! Many thanks for the sharing!

[MayumiMayumi-rplx]

this is such a good illustration. Thank you!

[monicamunteanu]

This is very clear. Thank you so much!

[nahraf]

great way to explain a thing ! nice drawing :)

[Broadbased]

So essentially the forward contract is just a delayed purchase/sell agreement.

[BrumBrumBryn]

Got confused when you stated saying pies per pound instead of apples per pound ha

[ParilKatrodiyaPk]

Contract between car insurance company and owner is which type of contract?

[MrLamine]

thanks à lot guys, ive learnt so much with you.

[aleksandar]

Cool. I kill myself trying to learn this from official university book and here it is, one click and apple away :D

[ilgnihc]

i’m being very serious right now, can we have drawing tutorials?