Since the forward transaction is a forward contract signed by the buyer and the seller, it is agreed that the transaction will be carried out in a certain period of time in the future, so there is no need for accounting treatment at the end of this month when the contract is signed.

In the foreign exchange market, the tool of forward business is a contract with fixed format and binding force. According to the contract, investors agree to buy or sell an agreed amount of another currency at a future date. The transaction price is calculated based on the spot exchange rate, and then adjusted according to the interest rate trend between the effective date of the contract and the completion date of the transaction. Forward trading is good for investors who need special trading, but it has disadvantages because forward trading cannot be transferred. Forward foreign exchange trading, also known as forward foreign exchange trading, is a kind of foreign exchange business that is bought and sold by appointment, that is, the buyer and the seller first sign a contract to stipulate the currency, amount, exchange rate and future delivery time of buying and selling foreign exchange, and then the seller meets and the buyer pays according to the contract.

Forward trading in securities trading means that both parties agree to trade at a certain time (or time period) in the future at the price determined now.

The forward transaction object is a non-standardized contract reached by both parties through private consultation, mainly in the form of commodity delivery, with high credit risk.