A forwarding contract is a type of financial agreement where two parties commit to buying or selling an asset at a predetermined price on a specific future date. In the context of cryptocurrencies, these contracts allow investors to hedge against price fluctuations.For example, if an investor anticipates that the price of a specific cryptocurrency will rise in the future, they may enter into a forwarding contract to buy it at today’s price. Conversely, if they expect the price to fall, they might sell a cryptocurrency at today’s price for a future date. This can help in managing risk and potentially securing profits.These contracts can be beneficial for businesses and traders who want to lock in prices and ensure better cash flow management. However, they also come with risks, such as the possibility of market prices moving unfavorably compared to the contracted price before the transaction is executed. Overall, forwarding contracts serve as a financial tool for strategic planning and risk management in the volatile crypto market.