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LSDefine

Simple English definitions for legal terms

forward cover

Read a random definition: present ability

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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18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
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im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
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true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
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