how does one use forward contract 
forward contracts are purchased in a manner similar to that of futures contracts the buyer and seller agree on the asset to be sold on the price and on the date that the exchange will take place the forward contract is settled only when the contract term expires unlike futures contracts which settle on a daily basis forward contracts are primarily used as a tool to hedge the volatility in the asset being traded that forward contracts can be more highly customized than futures contracts provides both more flexibility but also a higher risk 