Forward contract introduction | Finance & Capital Markets | Khan Academy

Forward Contract Introduction. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/futures-introduction?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/option-expiration-and-price?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. Sal you're just covering a high level summary, but really the mechanics of a forward contract you've overlooked completely. Waste of time videos
2. so how does an investor play into this? (someone who trades futures)
3. can you use metric system please?
4. Geate job
5. 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??
6. im here because my professor failed to explain this in the classroom. SMH.
7. thanks à lot guys, ive learnt so much with you.
8. Is this really correct? If so, what is the difference between "Futures" and "Forward" contracts?
9. very well explained
10. Everything in this video is perfect :) Thank you for the explanation :)
11. Your drawings are pretty. Just thought you should know that. Also, thank you for the explanation.
12. I really liked the example
13. Claaaaasy class ! Fun to watch
    I love the why you breaks these stuff in a very unique interesting way ..
    
    Bravoooo
14. So essentially the forward contract is just a delayed purchase/sell agreement.
15. looks like a strip club
16. 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?
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18. This explanation of a "Forward Contract" was so comprehensive and compact that my 7 year old can NOW explain it to someone else!
19. this 3 minutes video managed to explain what a professor at the university of Manchester couldn't do in two two-hours lectures.
20. @WhatCnaThisBe wacom tablet I guess