When to use forward contracts

When is using forward contracts a good move? Do these make sense for small-time investors?

Investing in forward contracts is similar to investing in cash market contracts (stock or other securities which you buy or sell at the going rate) in that you speculate on the value of a security or underlying asset rising or falling.

However, forward contracts are often much more complex than regular stock or currency purchases because they are often based on multiple criteria. For this reason, they are best left to experienced traders.

You can read more about forward transactions here.

Best regards from Moneyguru

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If you mean futures, these are mostly used for commodities trading. It's a risky business. Unless you have a real knowledge of the market you are trading in, it's really just gambling. Make sure you understand the commodity in question and its market before investing with futures.