long-term contract; forward contract

简明释义

远期合同

英英释义

例句

1.Investors often use a forward contract to hedge against price fluctuations in the market.

投资者通常使用远期合同来对冲市场价格波动的风险。

2.The long-term contract allows both parties to plan their budgets more effectively.

这个长期合同使双方能够更有效地规划预算。

3.A farmer may sign a forward contract to sell his crops at a predetermined price.

农民可以签署一个远期合同以预定价格出售他的农作物。

4.Our organization has a long-term contract with a service provider for IT support.

我们组织与一家服务提供商签订了长期合同以获得IT支持。

5.The company entered into a long-term contract to secure a steady supply of raw materials.

公司签订了一个长期合同以确保原材料的稳定供应。

作文

In the world of business and finance, understanding various types of contracts is crucial for effective planning and risk management. Two significant types of contracts that often come into play are long-term contract and forward contract. A long-term contract refers to an agreement between parties that spans over an extended period, typically more than one year. These contracts are commonly used in industries such as construction, energy, and supply chain management. The primary advantage of a long-term contract is the stability it provides to both parties involved. For example, a construction company may enter into a long-term contract with a supplier to ensure a steady supply of materials at predetermined prices. This not only helps in budgeting but also mitigates the risks associated with price fluctuations in the market.On the other hand, a forward contract is a financial agreement to buy or sell an asset at a predetermined future date for a specified price. Unlike a long-term contract, which usually involves goods or services, a forward contract is often related to financial instruments such as currencies, commodities, or securities. Businesses utilize forward contracts to hedge against potential losses due to price volatility. For instance, a farmer may use a forward contract to lock in the price of their crop before harvest, ensuring they receive a fair price regardless of market fluctuations at that time.The significance of these contracts becomes evident when we analyze their impact on financial forecasting and strategic planning. A long-term contract can provide companies with predictable revenue streams, allowing them to plan investments and expansions with greater confidence. In contrast, forward contracts serve as a protective measure against unforeseen changes in market conditions, thereby enhancing financial stability.Moreover, both types of contracts require careful consideration and negotiation. When entering into a long-term contract, parties must assess the terms thoroughly to avoid potential disputes in the future. This includes understanding the obligations, pricing structures, and termination clauses. Similarly, when dealing with forward contracts, it is essential to evaluate the underlying asset's market trends and potential risks involved. Failure to do so can lead to significant financial losses.In conclusion, the concepts of long-term contract and forward contract play vital roles in the landscape of business transactions. They offer different advantages and serve distinct purposes, yet both are integral to managing risks and ensuring stability in operations. As businesses navigate an ever-evolving market, mastering these contracts will empower them to make informed decisions that contribute to long-term success. Understanding the nuances of a long-term contract and a forward contract is not just beneficial; it is essential for any organization aiming to thrive in today's competitive environment.

在商业和金融的世界中，理解各种类型的合同对于有效的规划和风险管理至关重要。有两种重要的合同类型经常被提及，即长期合同和远期合同。长期合同是指双方之间的协议，通常持续超过一年。这些合同通常用于建筑、能源和供应链管理等行业。长期合同的主要优势在于它为双方提供的稳定性。例如，一家建筑公司可能与供应商签订长期合同，以确保以预定价格稳定供应材料。这不仅有助于预算编制，还可以减轻市场价格波动带来的风险。另一方面，远期合同是一种金融协议，约定在未来的某个特定日期以指定价格买入或卖出某项资产。与通常涉及商品或服务的长期合同不同，远期合同通常与货币、商品或证券等金融工具相关。企业利用远期合同来对冲由于价格波动而可能造成的损失。例如，农民可以利用远期合同在收获前锁定他们作物的价格，从而确保无论市场波动如何，他们都能获得合理的价格。当我们分析这些合同对财务预测和战略规划的影响时，它们的重要性变得明显。长期合同可以为公司提供可预测的收入来源，使其能够更自信地规划投资和扩展。相反，远期合同则作为防范意外市场变化的保护措施，从而增强财务稳定性。此外，这两种类型的合同都需要仔细考虑和谈判。在签订长期合同时，双方必须全面评估条款，以避免未来潜在的争议。这包括了解义务、定价结构和终止条款。同样，在处理远期合同时，评估基础资产的市场趋势和潜在风险也至关重要。未能做到这一点可能会导致重大财务损失。总之，长期合同和远期合同的概念在商业交易中发挥着至关重要的作用。它们提供不同的优势并服务于不同的目的，但两者对于管理风险和确保运营稳定都是不可或缺的。随着企业在不断发展的市场中航行，掌握这些合同将使其能够做出明智的决策，从而促进长期成功。理解长期合同和远期合同的细微差别不仅是有益的，而且对于任何希望在当今竞争环境中蓬勃发展的组织来说都是必不可少的。