Forward A forward contract represents the obligation to buy (sell)a security or commodity at a pre-specified price, known as the forward price,at some future date. At maturity the agent with the long position pays the forward price to agent with the short position,who then delivers the underlying asset. --No up-front payment (value of the contract is zero on the issue) --Everything is settled at maturityForward A forward contract represents the obligation to buy (sell) a security or commodity at a pre-specified price, known as the forward price, at some future date. At maturity the agent with the long position pays the forward price to agent with the short position, who then delivers the underlying asset. --No up-front payment (value of the contract is zero on the issue) --Everything is settled at maturity