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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

forward cover  

Definition 1.

The purchase of a cash commodity in order to cover the obligation of a forward contract.
 

Definition 2.

The purchase in the cash market of the difference between what you are obligated to deliver in a forward contract and the amount of the asset you own. For example, if you agreed to sell 100,000 bushels of corn in September in a forward contract, but you only have 60,000, you need to purchase 40,000 to cover your obligation.
 
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