Forward market
Template:Short description The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. It is mainly used for trading in foreign currencies, where the contracts are used to hedge against foreign exchange risk.<ref>Template:Cite book</ref><ref>Template:Cite book</ref> Commodities are also traded on forward markets. Examples include agricultural products such as rice,<ref>Template:Cite book</ref> and energy futures, such as oil and natural gas.<ref>Template:Cite book</ref><ref>Template:Cite book</ref> Transactions on a forward market are typically not standardized, and contracts are customised to the needs of the trading parties.<ref>Template:Cite book</ref><ref>Template:Cite book</ref> In contrast, standardized forward contracts are called futures contracts and traded on a futures exchange.<ref>Template:Cite book</ref><ref>Template:Cite book</ref>