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LSDefine

Simple English definitions for legal terms

forward cover

Read a random definition: incrementum

A quick definition of forward cover:

A forward cover is when someone buys a product to fulfill a promise they made to buy that product in the future. This promise is called a forward contract. A contract is an agreement between two or more people that is legally binding. It can be written down or just agreed upon verbally. When people talk about a contract, they usually mean the agreement, not the physical document.

A more thorough explanation:

Definition: Forward cover refers to the purchase of a cash commodity to fulfill the obligation of a forward contract.

A forward contract is an agreement between two or more parties that creates enforceable obligations. It involves the purchase or sale of an asset at a predetermined price and date in the future. Forward cover is used to fulfill the obligation of a forward contract by purchasing the underlying asset in the cash market.

For example, let's say a company enters into a forward contract to purchase 1,000 barrels of crude oil at $50 per barrel in six months. To fulfill this obligation, the company can purchase 1,000 barrels of crude oil in the cash market at the current market price, which may be higher or lower than the forward price. This purchase of crude oil in the cash market is known as forward cover.

Another example could be a farmer who enters into a forward contract to sell 500 bushels of wheat at $5 per bushel in three months. To fulfill this obligation, the farmer can sell 500 bushels of wheat in the cash market at the current market price, which may be higher or lower than the forward price. This sale of wheat in the cash market is known as forward cover.

In both examples, forward cover is used to fulfill the obligation of a forward contract by purchasing or selling the underlying asset in the cash market.

forward contract | forwarding agent

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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