Forwards Meaning:
In financial derivatives terminology, the term Forwards refers to a contractual transaction done for a value date other than the normal transaction value date, which would be value spot for foreign exchange forwards.Sometimes also called forward outrights, forward contracts generally involve buying or selling a currency or commodity scheduled for delivery at some specified value date in the future.

Forwards Example:
For example, Foreign Exchange Forwards will often be dealt by first dealing value spot, and then performing a currency swap to roll the position out to the desired value date. Such Forwards will often be used by corporations looking to protect or hedge a known currency exposure due to occur in a certain amount on a specific date.Forwards generally trade in the over-the-counter market, so they can be transacted in customized amounts and value dates out to 10 years. Nevertheless, certain standard value dates provide greater liquidity in the short-term interbank forward market. These include: 1 month, 2 months, 3 months, 6 months, 9 months and 1 year delivery dates.