Forward price

A forward price is like the price you agree to pay for something in the future. For example, let's pretend you want to buy a new toy car. You agree to buy the toy car from a store in two months, but the store doesn't know what the toy car will cost in two months. So, you decide to agree on a forward price right now. That means you will pay the store a set price for the toy car when you come back in two months, but you don't have to pay the store now. This forward price can be the same as the price of the toy car today or it could be higher or lower.