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forward quotation: meaning, definition, pronunciation and examples

C1
UK/ˈfɔːwəd kwəʊˈteɪʃən/US/ˈfɔːrwərd kwoʊˈteɪʃən/

Formal, Technical

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Quick answer

What does “forward quotation” mean?

A price quoted for a transaction that will occur at a specified future date, commonly used in finance for currencies, commodities, or securities.

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Pronunciation

Definition

Meaning and Definition

A price quoted for a transaction that will occur at a specified future date, commonly used in finance for currencies, commodities, or securities.

In publishing and writing, it can refer to a quotation placed at the beginning of a book or chapter to set a thematic tone, though this is less common and the term 'epigraph' is preferred.

Dialectal Variation

British vs American Usage

Differences

No significant difference in meaning. Spelling follows regional norms (e.g., 'forward' not 'forwards').

Connotations

Identical technical connotations in finance. Slightly more likely to be encountered in UK financial hubs like London.

Frequency

Equally frequent in professional financial discourse in both regions.

Grammar

How to Use “forward quotation” in a Sentence

[Bank/Dealer] provides a forward quotation [for + CURRENCY/COMMODITY] [at + RATE] [for + DATE].The forward quotation [is based on/reflects] the spot rate and interest rate differentials.

Vocabulary

Collocations

strong
obtain a forward quotationprovide a forward quotationforward quotation for eurossix-month forward quotation
medium
request a forward quotationcompare forward quotationsforward quotation ratecurrency forward quotation
weak
accurate forward quotationcompetitive forward quotationbank's forward quotation

Examples

Examples of “forward quotation” in a Sentence

verb

British English

  • The broker will forward quote the sterling-dollar rate for December delivery.
  • Can you forward quote us on ten thousand barrels?

American English

  • The trader forward quoted the euro at 1.09 for a 90-day contract.
  • We need the bank to forward quote the yen.

adverb

British English

  • The rate was quoted forward for three months.
  • Prices are agreed forward, not spot.

American English

  • They traded the currency forward, based on the earlier quotation.
  • The deal was structured forward to mitigate risk.

adjective

British English

  • The forward quotation window on the trading screen was updated.
  • They discussed the forward quotation mechanism.

American English

  • The forward quotation price is not fixed until the contract is signed.
  • Check the forward quotation table for oil futures.

Usage

Meaning in Context

Business

Essential in international trade and treasury management to hedge against currency risk. 'We need a forward quotation from the bank to lock in the cost of the imported materials.'

Academic

Used in economics and finance papers discussing derivatives, foreign exchange markets, and hedging strategies.

Everyday

Virtually never used in everyday conversation outside of professional finance contexts.

Technical

Core term in financial trading platforms, banking software, and risk management protocols.

Vocabulary

Synonyms of “forward quotation”

Strong

forward rate quotation

Neutral

forward ratefuture price quote

Weak

future quoteprice for future delivery

Vocabulary

Antonyms of “forward quotation”

spot quotationspot pricecurrent quote

Watch out

Common Mistakes When Using “forward quotation”

  • Using it to mean 'a quote placed forward in a text' (use 'epigraph' or 'introductory quote').
  • Confusing it with 'spot quotation' by omitting the crucial time element.
  • Misspelling as 'foreward quotation'.

FAQ

Frequently Asked Questions

They are similar concepts but differ in standardisation. A forward quotation is for a customised, over-the-counter (OTC) contract between two parties. A futures price is for a standardised exchange-traded contract.

No, it is a highly specialised financial term. In everyday contexts, phrases like 'future price' or 'price for later' would be used, though not with the same technical precision.

Typically, you need to specify the currency/commodity, the amount, and the specific future delivery date or period.

Currency risk (exchange rate risk). Your costs or revenues could become unpredictable if the exchange rate moves unfavourably between the deal agreement and the payment date.

A price quoted for a transaction that will occur at a specified future date, commonly used in finance for currencies, commodities, or securities.

Forward quotation is usually formal, technical in register.

Forward quotation: in British English it is pronounced /ˈfɔːwəd kwəʊˈteɪʃən/, and in American English it is pronounced /ˈfɔːrwərd kwoʊˈteɪʃən/. Tap the audio buttons above to hear it.

Phrases

Idioms & Phrases

  • “None directly associated.”

Learning

Memory Aids

Mnemonic

Think FORWARD in time: a FORWARD QUOTATION is a price for a deal that will happen FORWARD in the future.

Conceptual Metaphor

PRICE IS A PROMISE (for a future date).

Practice

Quiz

Fill in the gap
A company importing goods from Japan would typically request a from its bank to protect against a rising yen.
Multiple Choice

What is the primary purpose of a 'forward quotation' in finance?

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