GO
Loading...

Forward Contracts: CNBC Explains

Forward contracts are a mainstay in business, helping companies hedge risk and avoid volatility. Why and how do businesses use forward contracts? Salman Khan of the Khan Academy explains, using a simplified example.

From this video, you’ll understand:

  • The reasons for creating forward contracts
  • How businesses use forward contracts
  • How forward contracts help avoid volatility



Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • YPO's (Young Presidents' Organization) 22,000 top executives provide commentary about the issues affecting the economy.

  • CNBC 'Explains' the complicated economics of our world—from stocks and balance sheets, to trade and public policy.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.