Forward contract introduction | Finance & Capital Markets | Khan Academy

this is such a good illustration. Thank you!

so nice, so clear

「コンテンツを調整する必要があります」、

Sooo what if any side is unable to make good on their side of the contract?

How is the rate or cost for fixed vs fully optional contracts calculated? I mean why is a fixed contract cheaper than an optional one?

Who's storing and delivering these apples?

Crystal clear! Many thanks for the sharing!

You are just amazing

Very easy to understand!

Very good explanation sir,...

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

This is very clear. Thank you so much!

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

isn't this future? a bit confused.

Thank you very much! My head is already aching while reading the text only..Your drawing and explanation helps a lot. (^_^)

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

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

What if everyone agrees for a future contract? Then it will be the fair market value?

a good explanation along with the nice diagram.

Amazing explanation! Thank you

What is the difference between forward vs future contract? Same thing?

Apple farmer looks like he's about to harvest your soul

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

That pie farmer is a smart one.

Really? Is the farmer obligated to sell his apples even though the contract does not say he must sell it to the chain? I mean, if prices have risen then naturally he can sell it to someone else at the higher market price. Genuine doubt.

so how does an investor play into this? (someone who trades futures)

can you use metric system please?

some help here please!! what happens if a purchase of forward contract and a discount was given on the forward rate?? should i add the discount or minus the discount on the spot rate and why??

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

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

Is this really correct? If so, what is the difference between "Futures" and "Forward" contracts?

very well explained

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

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

I really liked the example

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

Bravoooo

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

looks like a strip club

question. so if the pie chain and farmer agree to a certain price, shouldn't that be the market price? why is there a price discrepancy between the supply and demand when they agree at a specified date? why the disequilibrium?

@wyzhdcp I've got it sorted now, averaging 400-500 pips a week easily. Finding the right trading system is key. I've tried them all, narrowed it down to one extremely powerful technique. Check out the video here --> bit.ly/LFsR1v?=ffzddp

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

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

@WhatCnaThisBe wacom tablet I guess

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

sir...did you draw that with your mouse??!

@JaoquinQ he has a MBA from harvard university, the best university in the world, he does not need to research cause he IS the source of information.

@OsloBobby and also a mathematician, physicist, engineer, buisness man hedgefund analyst...... the list goes on

@Entelex Who is the speculator in this forward contract? The producer or the chain?

This dude can draw...!