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Financial glossary



A forward is generally an OTC contract between two counterparties to buy or sell an asset (which can be for instance a foreign currency, a government bond, a stock) at a future date and at a predetermined price. A forward contract is traditionally opposed to a spot transaction.


A future is a contract to buy or sell an underlying (such as stock index, commodities, government bonds) at a specified date and at a pre-defined price. Unlike forwards which are generally OTCs, futures can be standardised contracts traded on exchanges that require margin calls.

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management Holding.